Asia’s fuel oil benchmarks were little changed on Tuesday, while latest ship-tracking data showed this month’s incoming supplies remained lower compared to the previous month.
Total supplies to East Asia are expected to hit about 5 million metric tons in May, compared with 5.5 to 6.0 tons in April, calculations based on LSEG’s ship-tracking data showed on Tuesday.
Expectations of lower supplies and stronger seasonal demand has given the market support in recent sessions.
The low-sulphur (VLSFO) market held rangebound, with cash premiums pegged between $6 to $6.50 a metric ton on Tuesday, though cracks dipped below $11 a barrel.
Market sources eyed the outcome of Kuwait’s VLSFO term tender which closes on Tuesday.
Meanwhile, high-sulphur (HSFO) benchmarks have been retaining support due to firm summer demand expectations.
Singapore’s cash premium for 380-cst HSFO was pegged at a premium between $8 to $8.50 a ton, though the product’s cracks eased to discounts below $7 a barrel on Tuesday.
Source: Hellenic Shipping News
