Refining margins for very low sulphur fuel oil (VLSFO) posted an increase from early to end February, data showed on Thursday.
The front-month 0.5% VLSFO/Dubai crack closed at a premium of about $14.80 a barrel at the Asia close on Feb. 29, climbing more than 20% from the start of the month.
Longer-term prospects of higher marine fuel demand amid Red Sea tensions have kept VLSFO margins supported in the year, though spot demand and cash premiums cooled off from January.
Meanwhile, high sulphur fuel oil (HSFO) benchmarks ended February in steady discounts as ample supplies weighed on the market.
Cash differentials for the 380-cst grade closed at discounts of $4.25 a metric ton on Thursday, while cracks FO380DUBCKMc1 were at discounts between $14 to $15 a barrel, tumbling more than 15% from early this month.
INVENTORY DATA
Singapore inventories STKRS-SIN fell 12.3% to 20.49 million barrels (3.23 million metric tons) in the week to Feb. 28, latest data from Enterprise Singapore showed.
The United Arab Emirates was the top origin for arrivals into landed storage at Singapore, followed by Russia and the Netherlands.
Most outflows from Singapore stayed within the region, with top volumes heading to storage hub Malaysia, while other top export destinations included China and Sri Lanka.
Source: Hellenic Shipping News
