Asia’s spot high sulphur fuel oil (HSFO) market has sunken back into a discount this week as bearish factors weighed.
The 380-cst HSFO cash differential closed at a discount of $1.70 a metric ton on Wednesday, after holding onto thin premiums from mid-October.
Refining margin for 380-cst HSFO was steady at a discount of $16.46 a barrel at Wednesday’s Asia close. FO380DUBCKMc1
Easing U.S. sanctions on Venezuela’s energy sector could pave way for additional exports of the heavy sour crude. Heavy crude grades can be used to produce fuel oil.
Meanwhile, the cash premium for 0.5% very low sulphur fuel oil (VLSFO) eased for a sixth consecutive session on Tuesday, after a short-lived rally towards eight-month highs.
The premium edged lower for a seventh straight trading day, closing at $14.75 a ton on Wednesday, while margin for 0.5% VLSFO slipped to a premium of $9.72 a barrel.
Source: Hellenic Shipping News
