Fuel oil cash premiums dropped further in Asia on Wednesday as more competitive offers emerged for October-loading products.
The premium for 0.5% very low sulfur fuel oil MFO05-SIN-DIF slipped to $1.68 a metric ton amid multiple selling interest in the window, while expectations of higher incoming supplies also weighed on the market.
Meanwhile, the October crack for 0.5% VLSFO was steady at a premium of $8.26 a barrel at 0830 GMT, based on LSEG Oil Research data.
High sulfur fuel oil continued to soften as seasonal demand from the Middle East is expected to retreat after summer.
The 380-cst HSFO premium FO380-SIN-DIF fell to $9.99 a metric ton, while October crack eased to a discount of $9.82 a barrel.
However, the slide in HSFO cracks is likely to be tempered by Saudi Arabia’s announcement of extended voluntary crude production into the fourth quarter, said consultancy FGE.
FUJAIRAH INVENTORIES
Fuel oil inventories at Fujairah rose 6% to 9.09 million barrels (1.43 million tons) in the week of Sept. 11, according to Fujairah Oil Industry Zone data published by S&P Global Commodity Insights.
Source: Hellenic Shipping News
