Cash premiums for fuel oil were steady in Asia on Wednesday, though market backwardation widened from the previous session.
The premium for very low sulphur fuel oil (VLSFO) held near an eight-month high, closing at $19.58 a metric ton, while refining crack was at $10.49 a barrel at the Asia close.
VLSFO stays supported amid lower-than-expected exports out of Kuwait’s Al Zour, with total October exports sliding from September, shipping data showed.
Market backwardation firmed, with the Nov/Dec time spread widening to $18.25 a ton at the Asia close, compared with $16.75 a ton the previous day, showed LSEG data.
Meanwhile, the high sulphur fuel oil (HSFO) premium has been inching slightly higher in recent sessions, as bids and offers rose.
The 380-cst cash premium FO380-SIN-DIF climbed to $3.50 a ton on Wednesday, while refining crack slipped to a discount of $15.02 a barrel.
Source: Hellenic Shipping News
