<article><p class="lead">Delivered premiums of very-low sulphur fuel oil (VLSFO) bunkers in Singapore are falling after several months of strength, because of a rise in cargo inflow and weak spot demand.</p><p>The additional cost to deliver VLSFO bunkers on top of the cargo price on 3 August was assessed at $49.56/t, down from an average of $95/t during July.</p><p>Premiums are falling as the market is expecting higher inflows of VLSFO cargoes from the west of Suez and Asia-Pacific this month, owing to margins having <a href="https://direct.argusmedia.com/newsandanalysis/article/2357781">previously been at record levels</a>.</p><p>High premiums and high outright prices have curtailed spot demand in recent weeks, with both buyers and sellers largely holding off.</p><p>Market participants are now returning to the spot market as crude prices are on the decline because of inflation and recession worries, and arbitrage inflows of VLSFO are picking up. </p><p><i>Argus</i> on 3 August assessed VLSFO bunkers at $752.31/t, a sharp decline of $55.62/t compared to 2 August. Other key bunker grades such as high-sulphur fuel oil (HSFO) and low-sulphur marine gasoil (LSMGO) also fell, but comparatively less than VLSFO.</p><p>This incentivised buyers to come back to the market, with <i>Argus </i>reporting 16 spot deals in Singapore, up from a more typical 10 per day.</p><p class="bylines">By Sammy Six</p></article>
