Asia’s spot fuel oil market eased on Tuesday as cash differentials slipped across key grades, after the market structure softened slightly.
Singapore’s cash premium for 0.5% very low sulphur fuel oil (VLSFO) MFO05-SIN-DIF fell to $27 a metric ton, though refining margin edged higher at a premium of $11.91 a barrel.
The market structure has remained strongly backwardated this month, though timespreads showed signs of softening on Tuesday. The balance-month/Dec backwardation spread for 0.5% VLSFO narrowed $3.50 day-on-day to $29.50 a ton on Tuesday.
High sulphur fuel oil (HSFO) slipped back into discounts amid bearish fundamentals.
The cash differential for 380-cst HSFO fell to a discount of $1.25 a ton, while refining margin dipped to a discount of $14.67 a barrel.
Source: Hellenic Shipping News
