Spot fuel oil benchmarks edged higher on Tuesday amid a backdrop of active bidding for October-loading parcels, while backwardation widened at the prompt months for all key grades.
Singapore’s cash premium for very low sulphur fuel oil (VLSFO) rose above $20 a metric ton to cargo quotes, while delivered bunker premiums climbed nearer to about $30, according to market sources.
October cracks for VLSFO closed higher day-on-day at premiums of about $11.60 a barrel, based on LSEG’s data.
The market continued to eye prospects of supply recovery in the coming weeks, though tightness still lingered at the prompt dates, said sources.
INCOMING SUPPLIES
Fuel oil supplies arriving in Asia for September are expected to breach 5.6 million tons, inching higher from around 5.4 million tons in August, showed LSEG data this week.
These comprise more than 1.7 million tons of Middle Eastern inflows, about 2.4 million tons of western arbitrage barrels, and over 1.5 million tons of intra-Asia regional cargoes.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Shreya Biswas)
