Strength in the Asia high sulphur fuel oil (HSFO) market eased further on Wednesday as the market eyed heavy supply.
More cargoes from the Middle East are expected to land in Asia this month as an earlier rally in HSFO prices drove more barrels to the region, trade sources said.
Singapore’s 380-cst HSFO cash premium dropped for a fifth session on Wednesday, slipping below $16 a metric ton.
Apart from Middle Eastern barrels, cargoes from regional refiners also added to supply prospects. Thailand’s PTT and India’s HPCL offered two HSFO cargoes each for April loading, based on sources.
Separately, Indonesia’s Pertamina offered more marine fuel oil for April, while Malaysia’s Prefchem offered a cargo of atmospheric residue. The tenders closed on Wednesday.
The very low sulphur fuel oil (VLSFO) market also remained at downside risk due to lacklustre refuelling demand.
Marine fuel sales at top bunker ports have shown signs of slowing as the shipping sector grapples with uncertainty over geopolitics and the impact of escalating tariffs on global trade.
Meanwhile, refining margins for VLSFO (LFO05SGBRTCMc1) dipped below $8 a barrel, while 380-cst HSFO cracks (FO380BRTCKMc1) closed at discounts near $2.50 a barrel, LSEG data showed.
INVENTORY DATA
– Fujairah heavy fuel inventories (FUJHD04) rose 13.2% to 11.04 million barrels (1.74 million tons) in the week to March 17, showed FOIZ data published by S&P Global Commodity Insights.
Source: Reuters
