Spot premiums for high sulphur fuel oil (HSFO) edged higher on Wednesday amid a stronger backwardated market structure.
Intermonth spreads firmed for both 180-cst and 380-cst grades at the prompt month on robust trading momentum in the derivatives market, said trade sources.
Cracks for 380-cst HSFO in December also closed higher day-on-day, at discounts of about $4.35 a barrel, based on LSEG data at 0830 GMT.
Some sources perceived lingering tightness in the prompt loading market, though incoming supplies are expected to steady or increase in the coming weeks.
In tenders, Kuwait Petroleum Corporation sold an HSFO cargo of 80,000 tons this week for loading between Nov. 17 and 18. The cargo likely traded at premiums above $30 a ton to Middle East quotes, holding near levels for the previous cargo, said sources.
Meanwhile, very low sulphur fuel oil (VLSFO) market held largely rangebound from its previous session, while cracks LFO05SGDUBCMc1 closed lower at premiums of $13 a barrel on Wednesday, showed LSEG data.
Source: Reuters (Reporting by Jeslyn Lerh)
