Asia’s High Sulphur Fuel Oil (HSFO) market eased on Wednesday, paring back from a recent rally that sent refining cracks to more than nine-month highs.
Front-month cracks for 380-cst HSFO retreated to discounts of about $5.25 a barrel, down from discounts of $4 in recent sessions, based on LSEG data.
Backwardation spreads for the prompt months also weakened, with 380-cst spreads between June and July narrowing to $15.30 a metric ton, compared with $19.25 on the previous day.
The market has remained robust due to tight supplies, with both refining margins and cash premiums touching more than nine-month highs recently.
Meanwhile, Very Low Sulphur Fuel Oil(VLSFO) dipped on Wednesday, with cash premiums sliding below $3 a ton. Refining margins slipped below premiums of $9 a barrel.
In tenders, Taiwan’s Formosa offered pyrolysis fuel oil for loading in end-June.
Source: Hellenic Shipping News
