Spot fuel oil premiums extended gains in Asia on Wednesday, backed by strength in the derivatives market where buying activity gathered pace and led to a firmer market structure, trade sources said.
The backwardation spreads for prompt trading months widened for key fuel oil grades, based on data from LSEG as well as market sources.
The strength in the derivatives market was largely driven by firmer buying activity from a major trading house, said sources.
Refining margins also rose day-on-day, with 380-cst High Sulphur Fuel Oil cracks hitting discounts of about $4.50 per barrel, while Very Low Sulphur Fuel Oil cracks closed higher at premiums of around $11.80 per barrel.
Source: XM
