Spot fuel oil benchmarks were slightly firmer on Tuesday, though the market eyed more high-sulphur supplies in the second half of June.
High Sulphur Fuel Oil (HSFO) markets held steady in recent sessions, but some trade sources expect more supplies to head into storage tanks in the second half of next month as Chinese demand tapers off due to high prices.
Cash premium for 380-cst HSFO inched higher to about $10 a metric ton on Tuesday, while crack spreads narrowed to about $4.40 a barrel.
Meanwhile, the Very Low Sulphur Fuel Oil (VLSFO) market also steadied following recent sell-offs, trade sources said.
Crack spread for VLSFO was little changed at premiums of about $8 a barrel on Tuesday.
Separately, Kuwait’s KPC offered two spot HSFO cargoes for loading in June. The tender closes on Wednesday, sources said.
INCOMING SUPPLIES
Fuel oil supplies to east Asia totalled less than 5.5 million tons this month, calculations based on ship-tracking data from LSEG Oil Research showed as of Tuesday.
Arrivals for May retreated for a second consecutive month, down from 5.5 to 6.0 million tons in April and a volume of over 7 million tons in March.
Source: Hellenic Shipping News
