Spot premium for Very Low Sulphur Fuel Oil (VLSFO) extended its uptrend on Tuesday as bids remained strong, while backwardation at the prompt months also continued to widen.
The premium was pegged at $18.80 per metric ton to Singapore quotes, holding onto more than nine-month highs.
Meanwhile, backwardation for the September and October contracts widened beyond $23 per ton, also hitting levels last seen in late November 2023.
The High Sulphur Fuel Oil (HSFO) market also received a boost amid VLSFO’s rally, with cash premium for the 380-cst grade surpassing $12 per ton on Tuesday.
According to trade sources, supply tightness for prompt loadings and deliveries has bolstered the market to its recent highs.
Source: Reuters
