Spot premiums for fuel oil eased in Asia on Monday, with offers retreating from the previous session, while overall trading momentum was largely thin.
Singapore’s cash premium for very low sulphur fuel oil (VLSFO) was pegged below $3 a metric ton to cargo quotes, with backwardation weakening further at the prompt months.
Meanwhile, 380-cst high sulphur fuel oil (HSFO)’s cash premium was pegged lower at $11.15 a ton on Monday, with the market showing some signs of easing after holding rangebound in recent sessions.
Reflecting the softer turn in the HSFO market, the hi-5 fuel oil spread steadied on Monday after softening recently to its narrowest premium in more than five months. The balance-month December hi-5 closed at $87.45 a ton, showed LSEG data (0830 GMT).
Total fuel oil supplies to Asia are likely to remain heavy into this month, trade sources said.
Within the region, Vietnam’s Nghi Son offered more fuel oil for December loading compared to its typical monthly volume. The refiner offered 37,000 tons of straight-run low sulphur fuel oil for loading from Dec. 16 via a tender that closes on Dec. 5.
REFINERY UPDATES
– Taiwan’s Formosa Petrochemical Corp is operating its refinery at a reduced rate of 410,000 barrels per day due to maintenance at its delayed coker unit (DCU) this month, its spokesperson KY Lin said on Monday.
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 Tasim Zahid)
