Cash premium for 380-cst High-Sulphur Fuel Oil climbed on the first trading day of June as a flurry of strong bids emerged.
The Singapore 380-cst HSFO cash premium was pegged at $12.65 a metric ton, hitting over a nine-month high.
Backwardation spreads also widened from last week, reflecting a tight prompt market.
HSFO price benchmarks have retained support in the second quarter so far amid less incoming supply arrivals in Asia.
In HSFO tenders, Pakistan’s PARCO had offered 50,000 tons of 180-cst HSFO for June loading, industry sources said. The tender closes on Monday.
Pakistan exported record-high volumes of fuel oil in May, ship-tracking data from Kpler showed.
The South Asian country had turned towards exporting more fuel oil instead of importing it since last year, as it shifted towards alternatives such as liquefied natural gas and coal for its power generation demand.
Meanwhile, Singapore benchmarks for Very Low Sulphur Fuel Oil (VLSFO) also firmed on Monday, though gains were largely limited.
Cash premium for VLSFO was pegged at $4.65 a ton, while cracks were broadly stable at premiums above $8 a barrel.
Source: Hellenic Shipping News
