Asia’s spot fuel oil market has started to stabilise in recent sessions, with very-low sulphur fuel oil (VLSFO) holding steady after a recent downtrend, while high sulphur fuel oil (HSFO) has begun to ease after rallying firmer due to strong bidding.
The Hi-5 fuel oil spread, which is the premium of VLSFO over HSFO, widened to $90.25 a metric ton FO05-380SGMc1 at Tuesday’s Asia close (0830 GMT).
The spread had previously declined and remained trapped at its lowest since October 2021, especially after the spot VLSFO market fell into discounts on expectations of higher supplies.
The cash differential for 0.5% VLSFO MFO05-SIN-DIF was pegged at a narrower discount of $1.52 a metric ton on Tuesday, while front-month crack spread LFO05SGDUBCMc1 closed higher day-on-day at a premium of $6.85 a barrel by 0830 GMT.
Meanwhile, 380-cst HSFO cash differential FO380-SIN-DIF slipped to a premium of $10.90 a ton, while product margin FO380DUBCKMc1 eased to a discount of $7.56 a barrel.
In tenders, Taiwan’s Formosa had sold 40,000 tons of main column bottoms for loading from Mailiao in August, sources said.
BUNKER UPDATES
Eastern Pacific Shipping (EPS) and China Power International Development have signed an agreement to collaborate on the production of green energy and renewable fuel solutions, EPS said in a recent statement.
Under the agreement, the companies will focus on developing and adopting cleaner shipping fuels, including green ammonia and green methanol.
Source: Hellenic Shipping News
