Asia’s hi-5 fuel oil spread narrowed week-on-week, led by softer benchmarks for 0.5% low sulphur fuel oil (VLSFO), while the 380-cst high sulphur fuel oil (HSFO) market firmed in contrast.
The balance-November hi-5 FO05-380SGMc0 closed at $105.35 a metric ton on Friday, based on LSEG data at 0830 GMT, narrowing more than 10% from last week. Meanwhile, December hi-5 FO05-380SGMc1 narrowed about 8% week-on-week to $111.31 a ton.
VLSFO came under pressure this week on the back of recovering supplies, with inventories extending a rebound at the Singapore hub after a dive in late October. In contrast, HSFO retained strength as some prompt supply tightness lingered, trade sources said.
In the downstream bunker market, Singapore premiums of delivered marine fuel have weakened for both VLSFO and HSFO grades this week.
Premiums of delivered VLSFO dropped to about $15 a ton to Singapore cargo quotes this week, compared with about $20 last week, based on data from sources. Meanwhile, delivered 380-cst HSFO bunker premiums fell to about $20 this week, versus $25-$30 the previous week.
