Asia’s spot premium for very low sulphur fuel oil (VLSFO) held steady on Monday, although the market structure softened at prompt trading months amid ample supplies.
The Singapore cash premium was pegged at $4.50 a metric ton, even as market backwardation narrowed for the Dec/Jan contract.
Refining margin held stable, with December VLSFO-Dubai crack closing near premiums of $12.50 a barrel, according to LSEG data.
On the derivatives front, trade sources said that selling interest was robust for VLSFO.
Reflecting the weaker VLSFO market, the hi-5 fuel oil spread continued to narrow. December hi-5 spread FO05-380SGMc1 closed at $109.38 a metric ton on Monday, showed LSEG data.
Meanwhile, Taiwan’s CPC sought low sulphur fuel oil for delivery in January. The tender closes on Tuesday with validity until Thursday, a notice on its website showed.
REFINERY UPDATES REF/OUT
– Gunvor has undertaken a temporary economic shutdown of its Rotterdam oil refinery effective Nov. 25, the company said in a statement on Friday, citing a lack of commercially viable feedstock.
– Russia’s second-largest oil producer Lukoil is restoring operations of its catalytic cracker complex, ramping up gasoline output after the unit’s breakdown on Nov. 13, two industry sources told Reuters on Friday.
