Spot premiums for high sulphur fuel oil (HSFO) dipped on Wednesday amid a backdrop of heavy supply arrivals, while the market structure weakened at the prompt trading months.
Singapore cash premium for 380-cst HSFO was pegged at $12.75 a metric ton, reflecting a narrower backwardation for the December-January contract. Meanwhile, the market for very low sulphur fuel oil (VLSFO) held stable to softer.
Supply arrivals from the Middle East and Russia are expected to remain heavy into December, some traders said.
Regional supplies also remained plentiful. Thailand’s PTT offered two cargoes of HSFO for loading in December, according to traders.
Refining margins were rangebound amid broadly stable crude prices. VLSFO cracks dipped below premiums of $12.50 a barrel, while 380-cst HSFO cracks closed at discounts of about $5.25 a barrel, based on LSEG data at 0830 GMT.
INVENTORY DATA
– Fujairah heavy fuel inventories FUJHD04 rose 5.2% to 9.15 million barrels (1.44 million tons) in the week to Nov. 18, hitting a two-month high, FOIZ data published by S&P Global Commodity Insights showed.
Source: Reuters
