SINGAPORE: Ex-wharf premiums in Asia's fuel oil markets rose on Friday as fewer supplier offers failed to meet firm demand for the marine fuel at a time when buyers are keen to lock in supplies ahead of the holiday season this month, industry sources said.
"End-user requirements are starting to come in for year-end supply," said one Singapore-based bunker fuels trader.
Another bunker trader said the market "is seriously tight" in terms of "volumes and availability" in part due to some congestion at Singapore's loading berths.
"Everyone is rushing to book fuel ahead of Christmas holidays," he said.
Ex-wharf premiums for 380-cst fuel oil rose by 32 cents a tonne from the previous close to $4.65 a tonne to Singapore quotes, the highest in nearly two weeks.
In a reflection of the bullish fundamentals, traders said the backwardated market structure of the 380-cst fuel on the Intercontinental Exchange (ICE) posted steady gains ranging between 20 and 70 cents a tonne across the curve into the second quarter of the new year.
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