Refining margins for High Sulphur Fuel Oil (HSFO) logged a sharp weekly drop as of Friday, with the market showing signs of a downward correction following its recent rally.
Cracks for July 380-cst HSFO fell to discounts of $6.50 a barrel on Friday, sliding nearly 70% from last week, based on LSEG data at 0830 GMT.
The market hit nine-month highs in end-May amid a drop in supplies, though cargo arrivals of various origins are expected to pick up in the latter half of June, trade sources said.
Spot premiums have also softened this week, with 380-cst cash differential dipping towards $12 a metric ton on Friday as more offers emerged.
Benchmarks for Very Low Sulphur Fuel Oil (VLSFO) were also under pressure this week, with cracks sliding below $8 a barrel, logging declines of about 30% from last week, while cash premiums also traded lower at $2 a ton on Friday.
Inventories have risen at key trade hubs, including Singapore and Fujairah this week, latest data showed.
Source: Hellenic Shipping News
