The spot cash premium for 180-cst High Sulphur Fuel Oil (HSFO) remained under pressure on Wednesday, while outcomes for recent sales tenders from Indian refiners emerged.
HPCL’s 180-cst HSFO sales tender for late June was awarded to E3 Energy, while BPCL’s tender for early July was awarded to Vitol, based on market sources.
Singapore’s spot premium for 180-cst HSFO softened to a six-week low, pegged at $5.95 a metric ton to Singapore quotes on Wednesday.
The weaker 180-cst market has crunched the HSFO viscosity spread to near parity, as the 380-cst market retained support.
The spread, which reflects the price difference between 180-cst HSFO and 380-cst HSFO, narrowed to less than 10 cents a ton on Wednesday.
Refining margins for 380-cst HSFO trended higher, with August cracks firming to discounts of about $5 a barrel, based on LSEG data.
Meanwhile, cracks for the Very Low-Sulphur Fuel Oil (VLSFO) market closed lower at about $9.45 a barrel.
Source: Hellenic Shipping News
