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Bunker price dives 49% year-on-year to $308 per tonne

Bunker price dives 49% year-on-year to $308 per tonne
Bunker fuel prices are continuing on a steady path of decline following the bearish crude oil market, with global benchmark grade Singapore 380 cst indicated at $308 per metric tonne (pmt) on Monday, down 49% year-on-year.

Yesterday’s bunker price was close to half that of $603.50 pmt recorded on 6 January 2014, according to data from Ship & Bunker.

Bunker prices started their steep descend in October last year due mainly to the crude oil price slump, coupled with a healthy level of bunker products. Singapore 380 cst prices first dipped below the $400-pmt mark to $394.50 pmt on 9 December 2014, before starting the new year with a lower price of $321.50 pmt on 1 January 2015.

Traders are speculating that bunker prices are heading to below $300 pmt as the product glut lingers and the crude oil market continues to soften.

“Bunkers starting with a ‘2’ is now firmly in place. While we think it extremely unlikely for them to start with a ‘1’ again we can hope that it happens during the next year,” Tim Bonett, broker and trader at KPI Bridge Oil, was quoted saying.

“Buyers should keep any eye on the market as we may be approaching the bottom soon,” he believed.

The last time that Singapore 380 cst fell below $300 pmt was on 30 April 2009 when the price was indicated at around $293 pmt, according to price data obtained by Seatrade Global from traders.