Refining margins for Very Low Sulphur Fuel Oil (VLSFO) posted a weekly decline as of Friday, according to trade sources. The market was underpinned by ample prompt supply.
The front-month crack for VLSFO LFO05SGDUBCMc1 logged a drop of more than 5% from last week, closing at a premium of about $10.50 per barrel on Friday, based on LSEG data.
Backwardation spreads also narrowed for the prompt months, with more selling interest emerging in the week, said sources.
On the bunkering front, premiums for VLSFO marine fuel delivered at the port of Singapore remain capped at about $10 per metric ton to cargo quotes as competitive offers persisted.
Meanwhile, Taiwan’s Formosa offered 40,000 tons of main column bottoms (MCB) for loading in early August via a tender that closes on Friday.
Source: XM
