Another factor bring in the equation
Recently some articles start writing on the stock situations in majors port like FJH and Singapore due to the recent Virus and weak demand; Thus pushing price further down. Normally when we consider bunker price most buyer only look at the movement of Brent, more advanced one might look at platts movement and even barge availability.
We normally don’t consider cargo inventory first as its rarely a major moving forces. However for bunker port with limited amount of cargo supplier, such as China or Hong Kong ( only by oil majors and few storage tanks location), stock play a major role in pricing as when price crash down or long holiday, the stock will be tighten and there could be NO cargo avail for few days in those places.
There are another scenario in Hong Kong that the cargo supplier “forced” the physical supplier to take out the cargo due to lack of spaces in storage tank for the coming month cargo therefore physical supplier might go more aggressive on pricing to get rid of the cargo in order to avoid penalty charges for storage.
Until next time
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