Asia’s hi-5 fuel oil spread held at narrow premiums as of Tuesday, amid a softening market for very low sulphur fuel oil (VLSFO) in recent trading sessions.
The front-month hi-5, which marks the premium of VLSFO over 380-cst high sulphur fuel oil (HSFO), has slipped below $90 a metric ton this week, LSEG data showed.
Trade was largely thin ahead of a holiday, though lower-priced spot offers emerged for VLSFO. These brought the cash premium lower for a sixth trading day to $6.30 a ton on Tuesday.
Meanwhile, cash premium for 380-cst HSFO held steady at levels above $8 a ton, with several bids holding their ground as with previous sessions.
REFINERY UPDATES
– Several independent oil refineries in eastern China have halted operations, or plan to do so, for indefinite maintenance periods as new Chinese tariff and tax policies plunge them deeper into losses, refinery and trade sources said.
– Lyondell Basell Industries began shuttering its 263,776 barrels-per-day Houston refinery on Monday for permanent closure, said people familiar with plant operations.
– Motiva Enterprises began shutting on Monday the gasoline-producing fluidic catalytic cracker at its 626,000 barrels-per-day Port Arthur, Texas, refinery for a planned two-month overhaul, people familiar with plant operations said.
