Asia’s High Sulphur Fuel Oil benchmarks were range-bound on Wednesday, while more tenders were underway for cargoes loading in July.
Kuwait’s KPC offered two spot cargoes of 380-cst HSFO for loading between July 19-20 and July 26-27. The tender closes on Wednesday, according to market sources.
Benchmarks for HSFO held largely stable in recent sessions. The market firmed in the second quarter but has since pared gains as seasonal demand is expected to taper off.
Market backwardation 380-cst HSFO in the prompt trading months narrowed to levels below $6 per metric ton on Wednesday, while margins for August were stable between discounts of $6.50 and $7 per barrel.
The Very Low-Sulphur Fuel Oil market (VLSFO) also softened on Wednesday, with cash premium sliding day-on-day, while refining cracks dipped below premiums of $11 per barrel.
Meanwhile, the August hi-5 fuel oil spread narrowed to $111.25 per ton on Wednesday, after hitting its widest in seven weeks on Tuesday.
Source: Hellenic Shipping News
