Sales of marine fuels in Singapore hit the highest levels for the year at 2.153 million tonnes in April, just below last December's record high of 2.156 million tonnes, government figures showed on Friday. The April figures were up 4 percent from the previous month, data from the Maritime Port Authority showed, despite 380-centistoke (cst) cargo prices for the month hitting an all-time average monthly high of $250 a tonne.
"Bunker volumes are driven more by shipping traffic than prices. When the vessels are here, they have to refuel whatever the prices are," a Singapore-based bunker supplier said. "Also, a lot of the barrels are done on a term-related basis anyway so, to a certain extent, buyers are insulated against the high prices."
The increase in volume is also driven by increased sales of the cheaper 500-cst bunker fuel, which saw 226,400 tonnes done in April, as more suppliers, in particular oil majors, sell the product.
The volume was 8.4 percent higher than the previous month and just below the all-time high figure of 231,900 tonnes recorded in December.
Sales of the grade is catching up with those of 180-cst, which stood at 266,500 tonnes, up 1.6 percent from the previous month.
Traders said more shipowners were turning away from the pricier 180-cst grade, used by older vessels with less efficient engines.
In line with the rise in the overall monthly volume, sales of the 380-cst grade, which typically accounts for about 70 percent of the total, rose by about 1.2 percent to 1.495 million tonnes, the data showed.