Asia’s high sulphur fuel oil (HSFO) market firmed on Tuesday amid market expectations of China resuming more purchases, following the recent release of fresh import quotas.
Spot discounts for 380-cst HSFO FO380-SIN-DIF narrowed to $2.59 a barrel, while margins FO380DUBCKMc1 edged higher to discounts of $11.21 a barrel.
China has been aggressively importing HSFO barrels in the first half of the year, before pulling back purchases in the third quarter after some refiners ran out of quotas.
The new quotas issued on Monday are expected to raise buying again, according to industry sources.
Meanwhile, the very low sulphur fuel oil (VLSFO) market continued to extend a downtrend.
Singapore’s 0.5% VLSFO cash premium MFO05-SIN-DIF tumbled to $12.25 a metric ton on Tuesday, while refining crack for LFO05SGDUBCMc1 was little changed at a premium of about $11 a barrel.
In tenders, India’s HPCL offered fuel oil for loading in December and early January, sources said.
SOURCE: HELLENIC SHIPPING NEWS
