Asia’s cash premium for very low sulphur fuel oil (VLSFO) fell below three-month lows on Monday, extending a steady decline since the start of the year.
The region is expected to remain amply supplied this month, with total monthly arrivals likely to breach 6 million metric tons, according to LSEG Oil Research.
Singapore’s cash VLSFO premium MFO05-SIN-DIF fell to $2.75 a ton on Monday, while front-month cracks remained below premiums of $11 a barrel.
High sulphur fuel oil (HSFO) also eased, with the 380-cst cash premium slipping to $6 a ton, while cracks softened to discounts of nearly $11 a barrel.
Meanwhile, Kuwait’s recent Al Zour tender was awarded to PetroChina, according to trading sources. Separately, Indonesia’s Pertamina offered V-1250 for February loading, in a tender that closes on Monday with validity until Jan. 10.
Source: Hellenic Shipping News
