Asia’s high sulphur fuel oil (HSFO) market extended gains for a second consecutive session on Wednesday, while the market eyed import demand from China and shipping tensions in the Red Sea.
Singapore’s 380-cst HSFO cash premium climbed to $10 a metric ton, with the product trading higher for loading dates in the second half of January.
There was no significant disruption spotted for Russian supplies to Asia as yet, said industry sources, though the market continued to keep tabs on developments in the region.
The strength likely came from expectations of firmer Chinese uptake, following the release of more import quotas late last year, industry sources said.
Refining cracks for 380-cst HSFO closed higher at discounts of nearly $8.50 a barrel on Wednesday.
In contrast, low-sulfur fuel benchmarks softened, with cash premium sliding to $5 a metric ton, while cracks for February slipped to premiums of about $13 a barrel.
Source: Hellenic Shipping News
