Asia’s high sulphur fuel oil (HSFO) margin held firm at 15-month highs on Tuesday amid supportive fundamentals.
The September crack for 380-cst rose to a discount of $2.96 a barrel at the Asia close (0830 GMT), while cash differential held steady at a premium of $25 a metric ton.
HSFO margins have been supported against a backdrop of Saudi Arabia’s extended output cuts.
While Chinese demand for HSFO has eased, monthly imports have remained high compared to historical levels.
Meanwhile, very low sulphur fuel oil (VLSFO) continued to retain weakness. Cash differential for 0.5% VLSFO dropped to a premium of $4.75 a metric ton on Tuesday, while crack spread closed lower at a premium of $11.17 a barrel.
METHANOL BUNKERING
Container shippers are ordering vessels powered by methanol to reduce greenhouse gas emissions, but it will take years for renewable methanol output to meet demand and for costs to fall, industry executives said.
The number of such vessels is expected to exceed 200 by 2028, up from 30 this year, consultancy DNV forecasts. The challenges of delivering enough fuel, however, are considerable and emissions will not be entirely eliminated.
Source: Hellenic Shipping News
