<article><p class="lead">Bitumen prices in the key Singapore market have firmed for a third consecutive week, supported by tight supplies and production cuts. </p><p>Discussions took place this week at close to $300/t fob Singapore, the first time prices have reached such levels since late September. <i>Argus</i> assessed prices at $295/t fob Singapore on 20 November, with this week's prices rising above this level. </p><p>Rising crude oil futures and feedstock 180cst high-sulphur fuel oil (HSFO) prices this week encouraged Singapore-based sellers to seek higher prices. </p><p>A key Singapore-based refiner announced a 20pc cut in its operating rates for December, which could extend into January 2021 as well. The cut was driven by squeezed margins caused by a very narrow spread between fuel oil and bitumen prices in the past few weeks. </p><p>Production also remains restricted at ExxonMobil's 100,000-120,000 t/month unit in Singapore, where output has been curbed since the <a href="https://direct.argusmedia.com/newsandanalysis/article/2150821">second quarter this year</a>.</p><p>Spot supplies have tightened for December-loading cargoes from Singapore as a result.</p><p>Buyers from key countries such as Vietnam and Indonesia remained on the sidelines following the increase in offers, resulting in a slowdown in trading this week. </p><p>The upswing in prices since early November has come in line with the steady increase in fuel oil prices. Bitumen prices have risen by nearly $20/t, from $280/t fob Singapore on 6 November to this week's discussion levels. </p><p class="bylines">By Mahua Chakravarty</p></article>
