Asia’s spot premium for very low sulphur fuel oil (VLSFO) slipped to a three-month low on Friday, weighed by ample prompt supply in the market.
The Singapore VLSFO cash premium was pegged below $4.50 a metric ton, while backwardation continued to narrow at the prompt trading months.
Meanwhile, the hi-5 fuel oil spread narrowed for a third consecutive week, based on LSEG data.
The December hi-5 spread FO05-380SGMc1 closed at $109.63 a metric ton on Friday, narrowing 2% week-on-week.
The 380-cst high sulphur fuel oil (HSFO) held to its current levels, even though further gains were capped by heavy incoming cargo arrivals into December.
Refining margins for the low-sulphur and high-sulphur grades trended in opposite directions on Friday.
VLSFO cracks for December LFO05SGDUBCMc1 dipped day-on-day to premiums below $12.50 a barrel, while 380-cst HSFO cracks FO380DUBCKMc1 firmed to discounts narrower than $5.50 a barrel, showed LSEG data at 0830 GMT.
INVENTORY DATA
– Fuel oil inventories in the ARA STK-FO-ARA fell 4.1% to 1.22 million tons in the week to Nov. 21, data from Dutch consultancy Insights Global showed.
Source: Reuters
