The cash premium for very low sulphur fuel oil (VLSFO) steadied on Tuesday after softening a day earlier, though the market’s front-month backwardation widened.
Kuwait’s latest spot tender for a cargo loading in early May has been awarded to Aramco, at a discount of about $9 a metric ton to VLSFO quotes and likely to land in Fujairah, trade sources said.
This means that Asia is unlikely to receive more supplies from Kuwait in May, though sources said that the broader supply pool remains ample.
Spot VLSFO premium was pegged at $2.25 a ton on Tuesday, while front-month cracks LFO05SGDUBCMc1 closed at premiums of $11.75 a barrel, based on LSEG data.
Meanwhile, the May/June intermonth spread widened to a backwardation of about $5.50 a ton at the Asia close, up from $4.75 in the previous day.
Source: Hellenic Shipping News
