Asia’s high-sulfur fuel oil (HSFO) market extended gains on Wednesday as stronger bids emerged, even as supplies to the East of Suez are unlikely to tighten in the coming weeks, with some tenders underway, traders said.
Cash differential for 380-cst HSFO climbed to a premium of $6.63 a metric ton on Wednesday, while the front-month margin firmed to a discount of $6.10 a barrel at the Asia close (0830 GMT).
In tenders, Pakistan’s PARCO offered HSFO for July loading, underlining an ongoing shift in market dynamics as the South Asian country turned to exporting instead of importing fuel oil this summer. Exports have so far gone to Singapore and the United Arab Emirates this year.
Separately, Philippines SL Harbour issued a tender seeking HSFO for August delivery.
Both tenders close on Tuesday.
Meanwhile, the cash premium for very-low sulfur fuel oil (VLSFO) continued to ease on Wednesday, underpinned by expectations of steady arbitrage arrivals into July and August. Cash differential for 0.5% VLSFO edged lower to a premium of $9.92 a ton, while the front-month margin closed at a premium of $9.96 a barrel
Source: Hellenic Shipping News
