Cash premiums for fuel oil were rangebound in Asia on Thursday, while latest data showed that inventories in Singapore rebounded following a sharp draw down last week.
Onshore inventories recovered to a two-week high after hitting 5-1/2-year lows last week, although overall stockpiles remained capped as incoming supplies to Asia fell in May.
However, average weekly fuel oil inventories fell to 18.09 million barrels in May, compared to 20.80 million barrels in April and 20.97 million barrels in March, calculations based on the official data showed.
This has kept High-Sulphur (HSFO) benchmarks supported, with Singapore 380-cst HSFO cash premiums holding above $10 a metric ton, while cracks were stable at discounts of $4.40 a barrel.
Meanwhile, the Low-Sulphur (VLSFO) market softened slightly amid a competitive spot offer for mid-June loading dates, with cash premium dipping below $4 a ton, though margins were stable at premiums of $8.40 a barrel.
Source: Hellenic Shipping News
