Business

Argus Media: Volatility rocks Singapore gasoil bunker prices

Uncertainty regarding supply availability and demand, amongst others, is leading to price swings in gasoil cargo prices and also delivered LSMGO bunker prices in Singapore.

Published

4 years ago

September 26, 2022

Admin

Uncertainty regarding supply availability and demand, as well as the actual volume of export quotas from China, are leading to price swings in gasoil cargo prices and also delivered low-sulphur marine gasoil (LSMGO) bunker prices in Singapore.

23 September 2022

The premium of LSMGO over very-low sulphur fuel oil (VLSFO) bunkers typically averages around $40-60/t. But since the war in Ukraine it has risen to levels up to $380/t, according to Argus data.

LSMGO bunkers contain 0.1pc sulphur, or 1,000ppm, but are priced in line with gasoil cargo futures prices with a sulphur content of 10ppm because of this market’s deep liquidity and some market participants’ need for hedging.

LSMGO bunkers are mainly traded in small quantities and used to power vessels’ auxiliary engines, while gasoil cargoes are traded in much larger quantities for road transportation and industrial uses with different specifications.

This disconnect has seen LSMGO bunker prices trading in more volatile ways in recent weeks than other key grades such as VLSFO and high-sulphur fuel oil (HSFO) bunkers.

The volatility in LSMGO bunker prices is likely reflecting the volatility of the 10ppm sulphur gasoil market, with the Asian gasoil market rocked in recent trading sessions by conflicting reports on China’s export situation.

The market has been weighing in the bearish news of a large increase in export quotas from China, with expectations of another 15mn t in export quotas on the way after the initial release of 1.5mn t. Since the announcement, conflicting market discussions have emerged questioning the scope of the quotas and whether the large volumes of exports are even feasible, considering logistical limitations such as the large volumes of crude supplies required to sustain such large exports and the limited freight available for shipping out oil products.

Some market participants have even ventured that it is “not possible” for China to export 15mn t of products in the next three months, citing such issues. This scepticism is likely being baked into the market, with Asian 10ppm sulphur gasoil margins — or the Singapore 10ppm sulphur gasoil swap against Dubai crude values — recovering from six-month lows of $26.93/bl on 15 September, when the expectations of extra export quotas first emerged, to around $35/bl as of 22 September.

Tighter supplies

The 10ppm sulphur gasoil market has otherwise been supported by persistently weak stocks of middle distillates, while supplies of gasoil are being capped this and next month by several turnarounds at Asia-Pacific and Mideast Gulf refineries. A stronger draw of gasoil towards west of Suez, as European demand is expected to firm with more gas-to-oil switching for power generation, should also continue to support the low-sulphur diesel market.

But LSMGO supplies should not be as tight as ultra-low sulphur diesel on a fundamental basis. The Singapore market is unlikely to see supplies tighten considerably, said a gasoil bunker trader. “The bulk of our imports originate from South Korea hence chances of exports to Europe are slim, with the only competitors being Vietnam and China”.

Ex-wharf sellers of LSMGO in Singapore have so far not signalled any cargo tightness, with supplies and demand stable, although shipment delays have emerged occasionally.

By Sammy Six and Cara Wong

Photo credit and source: Argus Media
Published: 23 September, 2022

Legal

Singapore withdraws remaining 127 charges against Hin Leong founder OK Lim

Lim Oon Kuin, also known as OK Lim, was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges on 17 July.

Published

15 hours ago

July 21, 2026

Admin

Founder of collapsed oil trader Hin Leong Trading, Lim Oon Kuin, also known as OK Lim, has had the remaining 127 charges against him withdrawn, according to The Straits Times on Monday (20 July).

OK Lim was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges, including those for cheating, on 17 July. The discharge means Lim cannot be prosecuted again for the same offences.

Lim, 84, is currently serving a 13½-year prison sentence after the High Court reduced his original 17½-year jail term in March 2026. He was convicted in 2024 on two cheating charges and one count of abetting forgery in a case prosecutors described as one of Singapore’s most serious trade finance frauds.

Lim was convicted in May 2024 of two charges of cheating the Hongkong and Shanghai Banking Corporation (HSBC) and one count of abetting forgery that proceeded to trial out of a total of 130 criminal charges.

He was first charged in court on 14 August 2020, and was subsequently handed further charges in court on 25 September 2020, 30 April 2021 and 24 June 2021 for his role in perpetuating fraud on various financial institutions.

A total of 130 charges were eventually brought against him for cheating and forgery-related offences.

Photo credit: Sora Shimazaki
Published: 21 July, 2026

Winding up

Singapore: Coastal Logistics Pte Ltd to be wound up voluntarily

Coastal Logistics was reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

Published

15 hours ago

July 21, 2026

Admin

Several resolutions for Coastal Logistics Pte Ltd were made during an extraordinary general meeting held on 14 July, according to a notice in the Government Gazette on Friday (4 July).

The following resolutions were duly passed during the meeting:

As Special Resolution

That it has been proved to the satisfaction of the meeting that the Company cannot by reason of its liabilities continue its business and accordingly the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018);

As Ordinary Resolutions

that Mr. Wong Pheng Cheong Martin and Ms. Koay May Yee, both care of FTI Consulting (Singapore) Pte Ltd, One Raffles Quay, #27-10 South Tower, Singapore 048583 be appointed as the joint and several Liquidators of the Company for the purpose of such winding up; and
that the Liquidators be at liberty to open, maintain and operate any bank account(s) or account(s) for monies received by them as Liquidators with such bank(s) as they deem fit; and
that a Committee of Inspection will not be formed.

Manifold Times previously reported Nicholas James Gronow, director of Heng Tong Fuels & Shipping and Coastal Logistics, filed statutory declarations for both companies stating the firms cannot continue their businesses due to liabilities.

Both companies were reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

In 2019, several vessels owned by both firms entered the sale & purchase (S&P) market in Singapore.

Photo credit: Drew Beamer
Published: 21 July, 2026

LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

Published

15 hours ago

July 21, 2026

Admin

PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post.

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024.

Photo credit: Pacific International Lines
Published: 21 July, 2026