Singapore’s cash premium for very low sulphur fuel oil (VLSFO) extended declines for a fourth straight session as of Monday, weighed by ample inventories and seasonally lower demand for marine fuel in February, industry sources said.
The product traded lower day-on-day to $5.65 a metric ton on Monday, though refining margins LFO05SGDUBCMc1 held their ground above premiums of $14 a barrel.
The market continues to eye Red Sea vessel diversions, which should provide a floor to marine fuel demand through this quarter, said sources.
Meanwhile, high sulphur fuel oil (HSFO) remains bearish as the market remains well supplied. The spot 380-cst market weakened into a deeper discount of $4.25 a ton on Monday, while cracks held at discounts of about $13 a barrel.
In tenders, India’s MRPL offered 40,000 tons of marine fuel for loading in mid-March. The tender closes on Wednesday.
BUNKER UPDATES
– Tank storage firm Vopak said on Monday it will repurpose part of its Sebarok terminal in Singapore for clients to blend and store marine biofuel.
Source: Hellenic Shipping News
