Asia’s very low sulphur fuel oil (VLSFO) market softened on Wednesday, while Kuwait’s Al Zour refinery offered VLSFO for loading between October and December.
The refiner offered 130,000 tons of VLSFO for loading each month during the period, via a tender that closes on Wednesday, trade sources said.
Amid signs of easing supply tightness, Singapore VLSFO traded at a lower cash premium for dates in the later part of October, while front-month cracks closed lower at premiums of $14.90 a barrel.
The hi-5 fuel oil spread narrowed on Wednesday after widening for four straight sessions, closing at $156.35 a metric ton, showed LSEG data.
Benchmarks for high sulphur fuel oil remained largely stable to softer, with cracks for 380-cst HSFO FO380DUBCKMc1 edging down to discounts of about $9.75 a barrel.
Separately, Taiwan’s CPC is seeking 40,000 tons of LSFO for delivery in November. The tender closes on Wednesday and is valid until Friday, based on its website.
