Singapore LSFO arbitrage arrivals from Europe seen lower in Nov amid high freight

Singapore’s low sulfur fuel oil arrivals from Europe are expected to fall in November as persistently high freight rates continue to shut the arbitrage window, even as the price spread between Singapore and Rotterdam remained at a record high, Asian and European trade sources said.

The world’s largest bunkering hub, Singapore, is now expected to receive around 1.3 million-1.5 million metric tons LSFO from the West in November, down from about 1.6 million-1.7 million mt in October, multiple Singapore-based traders told Platts, part of S&P Global Energy.

“Indeed, November arrivals are looking a bit lower for now” compared with October, said a Singapore-based trader, adding “the high freight rates are making the Europe arbitrage difficult, especially on bigger ships… Brazilian inflow is lower as well, and some oil seems to be going to Fujairah.”

Platts assessed the spread between Singapore marine fuel 0.5%S cargo and FOB Rotterdam 0.5%S barge assessments, or the East-West spread, at $192/mt Oct. 28, widening from $172/mt Oct. 27. The spread has gained 16.5% over the past two weeks and stands at its widest level since Platts began tracking the data in April 2022.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →