Spot premiums for fuel oil were largely unchanged on Monday amid a backdrop of thin trade, steadying after recent declines.
Bids held steady-to-higher for both high-sulphur (HSFO) and low-sulphur (VLSFO) grades, though gains remain capped by expectations of subsequently firmer supply arrivals.
The cash premium for Singapore 380-cst HSFO was pegged at $10.85 a metric ton on Monday, though 180-cst HSFO slipped to $7.65 a ton as offers softened.
VLSFO held largely stable from the previous session at about $9 a ton, though market backwardation narrowed at the prompt months.
Meanwhile, cracks for December contracts closed higher, with VLSFO LFO05SGDUBCMc1 at premiums of about $12.85 a barrel and 380-cst HSFO FO380DUBCKMc1 inching towards discounts of about $5.25 a barrel, based on LSEG’s data at 0830 GMT.
