Spot fuel oil premiums eased in Asia on Wednesday with more tenders underway, while Kuwait’s Al Zour refinery also awarded its latest sales tender for July.
The cargo of Very Low Sulfur Fuel Oil (VLSFO) was sold to BB Energy at a discount of $8-$9 per metric ton to VLSFO cargo quotes on a Free-On-Board (FOB) Kuwait basis, market sources said. The refiner had offered 130,000 tons of the product for loading July 21 and 22, in a tender that closed on Tuesday.
Meanwhile, more tenders were underway in the spot market, according to sources.
India’s HPCL had offered 30,000 tons of 380-cst High Sulfur Fuel Oil (HSFO) for loading between July 15 and 26, while Sri Lanka’s LIOC sought 25,000 tons of VLSFO for delivery between Aug. 8 and 11.
Broader supplies remained ample, preventing fuel oil benchmarks from recovering. On Wednesday, cash premiums for both 380-cst HSFO and 0.5% VLSFO edged below $5 per ton.
INVENTORY DATA
– Fujairah heavy fuel inventories FUJHD04 rose 7.8% to 9.42 million barrels (1.48 million tons) in the week to July 8, rebounding to a four-week high, showed FOIZ data published by S&P Global Commodity Insights.
