Asia price benchmarks for both very low sulphur fuel oil (VLSFO) and high sulphur fuel oil (HSFO) firmed up slightly on Tuesday, driven by support in the derivatives market structure.
Cash premium for 0.5% VLSFO MFO05-SIN-DIF rose to $7.84 a metric ton, while margins LFO05SGDUBCMc1 closed higher at premiums of $13.62 a barrel.
Meanwhile, 380-cst HSFO cash premium FO380-SIN-DIF was pegged higher at $4.25 a metric ton, while refining cracks FO380DUBCKMc1 climbed to discounts of $9.80 a barrel.
But ample supplies capped further uptick. Asia’s total fuel oil arrivals could exceed 6 million tons in December, comparing 20% higher than November, based on LSEG Oil Research this week.
The uptick in supplies was mainly driven by a surge in western arbitrage arrivals, ship-tracking data showed.
Source: Hellenic Shipping News
