Asia’s refining margin for 380-cst high sulphur fuel oil (HSFO) slipped to five-month lows on Tuesday, while cash premiums inched lower for a sixth consecutive session.
The October 380-cst HSFO crack fell to a discount of $14.23 a barrel at the Asia close (0830 GMT), while cash premium dipped to $3.99 a metric ton.
The HSFO market has undergone a downward correction after a short-lived rally in August, while expectations of softer seasonal demand from the Middle East also weighed on prices.
Kuwait’s KPC offered 60,000 tons of 380-cst HSFO for loading in end-September via a tender that closes on Tuesday, said trade sources.
Meanwhile, the very low sulphur fuel oil (VLSFO) market extended a rebound, though upside is capped by continued prospects of higher supplies.
Cash premium for 0.5% VLSFO rose to $6.72 a metric ton, though October crack LFO05SGDUBCMc1 fell to a premium of $7.69 a barrel at 0830 GMT.
INCOMING SUPPLIES
Fuel oil supplies to Asia are expected to breach 6 million tons for September, up by nearly 5% from August, based on latest assessments from LSEG Oil Research this week.
Western supplies and Middle Eastern supplies were little changed from August, while regional intra-Asian supplies rose, the assessments showed.
Source: Hellenic Shipping News
