Asia’s fuel oil market held steady to mildly softer on Tuesday, with ample supplies expected into December.
Spot premiums for very low sulphur fuel oil (VLSFO) dipped below $4 a metric ton, while backwardation continued to narrow at the prompt months.
Refining margin for VLSFO also softened, with December VLSFO-Dubai cracks closing lower at premiums of about $12 a barrel, based on LSEG data.
Amid weakness in the low-sulphur market, the hi-5 spread for December FO05-380SGMc1 narrowed further to nearly $102 a metric ton on Tuesday.
REFINERY UPDATES
– The large crude distillation unit was back to normal operation on Monday at Valero Energy Corp’s VLO.N 360,000 barrel-per-day Port Arthur, Texas refinery after completing repairs, said people familiar with plant operations.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Shailesh Kuber)
