Asia’s market for Very Low Sulphur Fuel Oil (VLSFO) retained its strength on Wednesday, with cargo premiums climbing amid firmer spot bids for September loading dates.
Spot benchmarks recently jumped to their highest over nine months as supplies tightened with a lack of blending components for marine fuels at the Singapore hub.
The cash premium rose above $19 per metric ton to Singapore quotes on Wednesday, while backwardation for the September and October contracts widened to $28 per ton.
High Sulphur Fuel Oil (HSFO) also extended gains, with the cash premium for the 380-cst grade climbing above $13 per ton.
In tenders, Pakistan’s PSO offered 50,000 tons of 180-cst HSFO for loading in late September. The tender closes on Wednesday.
Source: XM
