Asia’s spot market for 180-cst high sulphur fuel oil (HSFO) firmed on Tuesday as a stronger bid emerged and traded, while 380-cst HSFO differentials also extended gains.
The HSFO market has rebounded recently on the back of lower supply expectations, as the Middle East typically exports less cargoes as it enters into its summer months.
Cargo arrivals from the Middle East to Asia declined to about 1.3 million tons in April, versus volumes that were over 2 million tons in March, calculations based on LSEG ship-tracking data showed, while volumes for loading in May were at about 1.4 million tons so far.
Meanwhile, recovery in the very low sulphur fuel oil (VLSFO) market was lagging due to the presence of multiple sellers and offers that met with thin buying interest.
Spot demand in the VLSFO bunker fuel market has shown little recovery in recent trade sessions, with trade sources saying that premiums remain stuck in the low $10s per metric ton range.
Source: Hellenic Shipping News
