Asia’s cash premium for Very Low Sulphur Fuel Oil (VLSFO) edged up on Tuesday, though bunker premiums remained at a downside risk as demand slowed since the start of the Lunar New Year, trade sources said.
The market was largely range-bound on mixed drivers. On the supply front, total arrivals in East Asia have dipped from the previous month, based on ship-tracking data.
However, demand for VLSFO bunker fuel has softened since the start of the Lunar New Year, following a month of strong premiums in January, sources said.
Delivered bunker fuel premiums in Singapore fell below $25 a metric ton, compared to above $30 a ton before the Lunar New Year, they added.
Meanwhile, the spot market for High Sulphur Fuel Oil (HSFO) remained trapped in discounts. Several sellers were still trying to offer the product, with some offers holding discounts.
Source: Hellenic Shipping News
