Asia’s high sulphur fuel oil (HSFO) weakened sharply on Thursday, a sign that the rally in early August had lost steam.
The cash differential for 380-cst HSFO FO380-SIN-DIF fell to a premium of $9 a metric ton to Singapore quotes as the product traded lower. Both bids and offers have retreated.
Meanwhile, the 380-cst HSFO September crack FO380DUBCKMc1 declined to a discount of $6.40 a barrel at 0830 GMT.
The very low sulphur fuel oil (VLSFO) market continued to hold steady, with the 0.5% VLSFO cash differential MFO05-SIN-DIF inching higher to a premium of $5.92 a metric ton.
The September crack for 0.5% VLSFO LFO05SGDUBCMc1 closed at a premium of $10.61 a barrel.
In tenders, Taiwan’s CPC offered catalyst fractionator bottom for September loading. The tender closes on Thursday and is valid until August 28.
SINGAPORE INVENTORIES O/SING1
Onshore fuel oil stocks STKRS-SIN rose 10% to 22.10 million barrels (3.48 million metric tons), data from Enterprise Singapore showed.
The UAE was the top origin for Singapore’s fuel oil imports, with volumes at 354,000 tons, versus zero volume last week.
A strong high-sulphur market continued to provide a draw for Middle Eastern barrels to Asia
Source: Hellenic Shipping News
