Spot premiums for Very Low Sulphur Fuel Oil (VLSFO) extended declines on Monday as selling interest persisted with multiple spot offers.
The Singapore cash premium traded lower to $1 a metric ton, while the market structure continued to soften at the prompt months with narrowing backwardation.
Refining margins for VLSFO rebounded to slightly above $8 a barrel, based on LSEG data.
But supplies remained broadly ample for the VLSFO market and this has capped benchmarks, according to industry sources and ship-tracking data.
In recent tenders, Indonesia’s Pertamina offered its residual fuel products for July loading, including V-1250 fuel and decant oil. The tender closes on Monday.
Meanwhile, the High Sulphur Fuel Oil (HSFO) market has steadied in recent sessions. A recent rally has pared amid expectations of more supply replenishment.
The 380-cst HSFO cash premium was pegged at $12 a ton on Monday, while cracks eased further at discounts of around $6.70 a barrel.
Source: Hellenic Shipping News
