Asia’s high sulphur fuel oil (HSFO) market held in discounts on Tuesday as persistent selling interest and multiple offers continued to cap recovery in the market.
The Singapore 380-cst HSFO cash differential was pegged at a discount of $3.92 a metric ton on Tuesday, while cracks FO380DUBCKMc1 held at discounts of about $10 a barrel.
A stream of offers have emerged daily since the start of the month, with an ample supply pool weighing on the broader market, still comprising mainly Russian barrels, trade sources said.
Meanwhile, very low sulphur fuel oil (VLSFO) also eased. Support had previously emerged amid strong bunkering demand, but the strength waned as high supply inventories capped prices.
The 0.5% VLSFO cash differential fell to a premium of $4.88 a metric ton, while margins LFO05SGDUBCMc1 eased to premiums of about $12.50 a barrel.
Source: Hellenic Shipping News
