Asia’s high sulphur fuel oil (HSFO) market posted a recovery on Monday after more buying interest emerged on the derivatives front in recent sessions.
Spot trade was still largely thin but paper markets firmed, with some participants buying up inter-month spreads and cracks, market sources said.
Singapore 380-cst HSFO cracks closed at discounts of about $4.60 per barrel on Monday, firming from the previous trading day, according to LSEG data.
Market structure also strengthened after its recent weakness, with Jan/Feb backwardation widening above $3 per metric ton, while spot premiums were also pegged slightly higher.
As for very low sulphur fuel oil (VLSFO), the benchmarks were broadly stable, with overall trading largely thin. Singapore VLSFO cracks LFO05SGDUBCMc1 held steady near premiums of $10 per barrel.
Amid the uplift in HSFO markets, the hi-five spread narrowed day-on-day to $92 a ton at the Asia close.
SINGAPORE BUNKER SALES
Bunker sales at Singapore totalled 4.46 million metric tons in November, down 8.5% month-on-month but higher by 4.6% from a year ago, latest data showed.
Volumes logged monthly declines for all marine fuel grades. Spot demand was largely lukewarm in November, while some market participants noted that the trend is extending into December.
Bunker premiums have fallen to five-month lows this month, with some aggressive daily offers seen in the market, sources said.
