Benchmarks for High Sulphur Fuel Oil (HSFO) eased on Monday, while more residual fuel tenders were underway in the spot market.
Backwardation time-spreads for HSFO narrowed from last week, while 380-cst cash premiums were pegged below $5 per metric ton amid competitive offers for prompt loading dates.
Cracks for 380-cst HSFO FO380DUBCKMc1 held their ground, closing at discounts of about $5 per barrel.
In spot residual fuel tenders, Taiwan’s CPC offered catalytic fractionator bottoms for loading between the end of July and early August, while Indonesia’s Pertamina offered decant oil for loading at the end of August, based on industry sources and shipping records.
On the Very Low-Sulphur Fuel Oil (VLSFO) patch, benchmarks were broadly stable from last week. Front-month cracks LFO05SGDUBCMc1 were at premiums of $10.50 to $11 per barrel on Monday, based on LSEG data.
BUNKER SALES
Singapore bunker sales in the first half of 2024 totaled 27.2 million tons, climbing 8.5% from the same period last year.
Shipping disruptions in the Red Sea boosted global bunkering demand, though it slowed month over month in June, industry sources said.
June bunker sales totaled 4.27 million tons, sliding 11.4% from May, while container throughput eased 5.1% to 3.35 million TEUs, MPA data showed.
The slower monthly sales could be driven by regional diversions to China’s Zhoushan which was offering fuel at lower prices than Singapore in June, according to sources.
Source: XM
