Asia’s hi-5 fuel oil spread narrowed by over 20% week-on-week, reflecting a weaker market for very low sulphur fuel oil (VLSFO) while high sulphur fuel oil (HSFO) held its ground.
The premium of VLSFO over 380-cst HSFO, also known as the hi-5, fell to $87.15 a metric ton on Friday, showed LSEG data at Asia close (0830 GMT). The price spread held at its narrowest in more than five months.
The market has been underpinned by heavy incoming supplies to Asia, with several traders eyeing a steady-to-softer market into December.
Refining margins for VLSFO slipped below premiums of $11 a barrel on Friday, closing at more than a three-month low.
Meanwhile, 380-cst HSFO cracks closed at discounts of about $3 a barrel, sliding day-on-day but holding near a one-month high.
Bunker premiums dropped this month, with delivered-basis premiums softening for both low-sulphur and high-sulphur marine fuel grades, based on data from market sources.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Shreya Biswas)
