Spot cargo premiums for Asia’s very low sulphur fuel oil market largely held to their recent strength on Wednesday, though bunker premiums for the fuel lagged behind, trade sources said.
The 0.5% VLSFO cargo cash premium MFO05-SIN-DIF was little changed at $17 a metric ton on Wednesday, following a sudden uptrend since last week.
However, bunker fuel premiums for the product were lagging behind the recent market strength owing to average spot demand, traders said.
Bunker fuel premiums on a delivered pricing basis were at about $15 a ton this week, lower than the cargo premiums and compromising trading profits.
Separately, Asia’s high sulphur fuel oil (HSFO) market continued to soften, with cash differentials for 380-cst HSFO slipping into a discount on Wednesday. FO380-SIN-DIF
Offers by multiple sellers continued to emerge in the Singapore spot market. Meanwhile, Kuwait’s KPC offered more HSFO for loading in October, in a tender that closes on Wednesday.
Fuel oil refining margins were steady to weaker. November crack for 0.5% VLSFO LFO05SGDUBCMc1 slipped to a premium of $8.42 a barrel at the Asia close, while 380-cst HSFO crack FO380DUBCKMc1 was steady at a discount of $15.32 a barrel.
FUJAIRAH INVENTORIES
Fuel oil inventories at Fujairah FUJHD04 rose to 11.65 million barrels (1.84 million tons) in the week to Oct 2, hitting a four-month high, as per Fujairah Oil Industry Zone data published by S&P Global Commodity Insights.
Source: Hellenic Shipping News
