Asia’s viscosity spread for cst High Sulphur Fuel Oil (HSFO) narrowed further on Tuesday, while the market eyed several South Asia tenders offering HSFO for spot loading.
A couple of Indian refiners have offered 180-cst HSFO via tenders that close on Tuesday, industry sources said.
India’s HPCL offered 20,000 metric tons of the product for loading between June 20 and 27, while BPCL offered 30,000 tons for loading between July 5 and 7.
Pakistan’s PARCO is also offering 180-cst HSFO via a tender that closes on June 25, with the loading laycan to be finalised later.
The viscosity spread, which is the price difference between 180-cst HSFO and 380-cst HSFO, narrowed below $1.50 a ton on Tuesday, latest data showed.
The 380-cst market retained its strength, with cash premiums and margins holding stable from last week’s levels.
Front-month cracks for 380-cst HSFO inched up to discounts of about $6 a barrel on Tuesday, while Very Low-Sulphur Fuel Oil (VLSFO) cracks also closed higher at about $9.75 a barrel.
Meanwhile, intermonth timespreads for fuel oil widened in backwardation for the prompt months for all key grades.
Source: Hellenic Shipping News
