Asia’s 380-cst High Sulphur Fuel Oil (HSFO) market weakened on Thursday as a lower-priced trade emerged, while inventories at key storage hub Singapore rose for a fourth consecutive week.
Onshore stockpiles have recovered as supplies to Asia rose in the second half of this month, trade sources said, while bunkering demand has been tepid in the week.
Cash premium for 380-cst HSFO slipped to about $10 a metric ton on Thursday, while cracks closed near discounts of $5 a barrel.
China’s import demand for HSFO also retreated in May and June after hitting multi-year highs in April, according to sources and data.
On the Very Low-Sulphur Fuel Oil (VLSFO) front, cash premiums were little changed this week, while cracks continued to hover near $9 a barrel.
Bunkering demand slowed in a holiday-thinned week, while some shipowners also monitored the recent oil spill situation, according to sources.
Source: Hellenic Shipping News
