Cash differentials for spot fuel oil were rangebound on Thursday, while latest data showed inventories at Singapore extended a drawdown for a second consecutive week.
The high sulphur fuel oil (HSFO) market continued to hold in discounts amid ample supplies regionally, while Chinese demand faced a lull amid the Lunar New Year holidays.
The very low sulphur fuel oil (VLSFO) market was steady, with cash premiums holding above $7 a metric ton.
Trade sources are expecting lower February arbitrage supplies to provide a floor to the market, though demand on the marine bunkers front recently slowed compared to December and January, they added.
Refining cracks for fuel oil dipped on Thursday, with 380-cst HSFO margins closing at discounts of around $13.40 a barrel, while VLSFO cracks eased slightly below premiums of $14 a barrel.
BUNKER SALES
Marine bunker sales in Singapore kickstarted 2024 on a firm note, latest data from Singapore’s Maritime and Port Authority showed.
January sales climbed 12.1% year-on-year as shipping disruptions in the Red Sea spurred more ships to refuel in the city-state.
Vessel calls for bunkering rose for a second month, though tighter availability of bunker barges led to a slight dip in bunker sales compared to December.
Source: Hellenic Shipping News
