Ex-wharf premiums on Singapore term bunker fuel contracts were down to between $3.50 and $4.00 per metric tonne (pmt) for November, compared with $5.00 to $6.00 for October, Reuters reports.
Demand for the term contracts from shipowners was said to be down as shipowners are still using bunker supply from fourth-quarter contacts or are choosing to buy form the spot market.
"With the current climate, people will just turn to spot (market) if they're going to buy more, rather than committing to one direction through term (contracts)," a Singapore-based bunker source said.
Bunker sales during September in Singapore dropped for a second consecutive month to 3,326,400 metric tonnes (mt) for all products, down 6.46% on August totals and the lowest monthly sales since 3,092,700 mt in February.
Last month, some bunkering and shipping industry leaders said global demand for bunkers will not recover until at least 2014.
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