Asia’s High Sulphur Fuel Oil (HSFO) firmed slightly this week, while benchmarks for Very Low Sulphur Fuel Oil (VLSFO) remained capped as of Wednesday amid ample supplies in the region.
Intermonth backwardation spreads for HSFO widened for both 180-cst and 380-cst grades from the previous session, an indication that prompt supply remained broadly tight.
Refining cracks were little changed at discounts of about $6 a barrel.
VLSFO benchmarks held largely steady on Wednesday, though the market remains at risk of downside due to ample supplies, trade sources said.
The market is eyeing more blendstocks to the Asia hub, as Singapore will receive this week its first Low-Sulphur Straight-Run fuel oil (LSSR) cargo exported from Nigeria’s new Dangote refinery.
The refinery has been exporting more LSSR since March, with most of these cargoes landing in America and Europe, though some cargoes are now on the way to Asia due to a much weaker market in Europe.
Meanwhile, cracks for VLSFO remained shaky, though they held above $8 a barrel due to broader weakness in the refining complex led by a recent collapse in the gasoline market, sources said.
Source: Hellenic Shipping News
