Spot fuel oil benchmarks eased on Tuesday as ample incoming supplies weighed on sentiment.
Singapore’s cash premium for very low sulphur fuel oil (VLSFO) continued to fall after hitting a six-week low, with the product trading softer at $5 a metric ton for December dates.
Meanwhile, the cash premium for 380-cst high sulphur fuel oil (HSFO) also eased, dropping below $13.50 a ton.
Total fuel oil supplies arriving in Asia are expected to breach 7 million tons for November, just as last month, based on data from LSEG Oil Research this week.
The strong inflows were led by an uptick in western arbitrage arrivals, as well as a strong recovery in Middle Eastern barrels after summer demand retreated.
Refining margins for fuel oil trended steady to softer in Asia during recent sessions. VLSFO cracks continued to hover below premiums of $13 a barrel, while 380-cst HSFO cracks closed lower at discounts nearer to $5.50 a barrel, based on LSEG’s data at 0830 GMT.
REFINERY UPDATES
– U.S. oil refiners are expected to have about 291,000 barrels per day of capacity offline in the week ending Nov. 22, raising available refining capacity by 316,000 bpd, research company IIR Energy said.
Source: Reuters
