Asia’s High Sulphur Fuel Oil (HSFO) market continued to ease on Thursday, while onshore inventories in Singapore recovered for a second consecutive week.
The recent rally in HSFO has shown signs of losing steam this week, traders and analysts said.
Refining cracks for 380-cst HSFO fell to discounts of about $6.40 a barrel on Thursday, while cash premiums dipped below $14 a metric ton.
Chinese demand for HSFO as a refining feedstock has also retreated due to the recent price strength, with monthly import volumes tapering off in May and June, based on trade sources and ship-tracking data.
Inventories in Singapore have also edged higher in recent weeks, recovering to a three-week high.
Meanwhile, Very Low Sulphur Fuel Oil was broadly steady on Thursday, with refining margins remaining below premiums of $9 a barrel.
Source: Hellenic Shipping News
