Singapore 380 CST high sulfur bunker fuel prices dipped to a 21-month low of $586/mt Wednesday, on the back of weak demand and bearish crude.
The outright price was last lower June 29, 2012, when it was $578.50, Platts data showed.
Singapore 380 CST prices have shed $40/mt since the year-to-date high of $626/mt on January 21.
Traders said spot demand has been week as buyers hold out for lower prices and due to excess supply arriving from Europe and the Americas.
The cash differential for 380 CST HSFO flipped into a discount early last week and has since fallen further to minus $1.49/mt Wednesday, Platts data showed.
The cash differential for physical fuel oil represents the price buyers are willing to pay for oil above or below benchmark values published around the day a cargo loads.
Traders expect Asia to continue to receive a significant inflow of Western arbitrage fuel oil for April and possibly into May amid sinking freight rates.
An estimated 4 million mt has been so far for May arrival, trade sources said this week.
