The cash differential for very-low sulphur fuel oil (VLSFO) slipped to more than two-year lows in Asia on Wednesday as selling interest persisted.
Multiple sellers were offering the product for spot sales, while bids were absent.
The 0.5% VLSFO cash differential fell to a discount of $1.88 a metric ton to Singapore quotes, sliding for seven consecutive sessions.
The product’s front-month crack also weakened day-on-day to a premium of $6.44 a barrel.
Meanwhile, the high sulphur fuel oil (HSFO) market held steady. The cash differential for 380-cst closed at a premium of $12.70 a ton, while front-month crack FO380DUBCKMc1 rose to a discount of $7.89 a barrel.
FUJAIRAH INVENTORIES
Fuel oil inventories at Fujairah fell 16% to 7.85 million barrels (1.24 million tons) in the week to July 17, hitting 17-month lows, based on Fujairah Oil Industry Zone data published by S&P Global Commodity Insights.
Source: Hellenic Shipping News
