18 March 2013 08:52 [Source: ICIS news]
SINGAPORE (ICIS)--Singapore’s base oil ex-tank prices are rising as a result of firm demand and lack of spot cargo availability, market sources said on Monday.
The recent tight availability amid regional cuts in Group I base oil production in southeast Asia had reduced the supply of bulk cargoes in Singapore.
As a result, several traders and buyers were out in the market looking for ex-tank cargoes which were the only other option available.
“The increased in demand of ex-tank cargoes has supported higher prices as sellers are taking advantage of the pickup in demand to raise offers,” a buyer said.
Moreover, the recent announcement by a key Singapore based refiner to raise prices on heavier grades of base oils on an ex-tank basis by $30/tonne with effect from 19 March has also prompted several other sellers in the region to follow suit.
Prices of SN150 were up by $10/tonne on the low end of the range at $980-1,010/tonne ex-tank Singapore, prices of SN500 were up by $20/tonne on the high end of the range at $1,060-1,100/tonne ex-tank, while bright stock prices gained $20-40/tonne at $1,130-1,170/tonne ex-tank Singapore.
Some market participants expect that a Singapore refiner may raise prices further in the next few weeks, prompting many buyers to start building inventory ahead of such a rise.
($1 = €0.77)
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