The very low sulphur fuel oil market (VLSFO) in Asia softened on Tuesday as more arbitrage supplies are expected to arrive at the Singapore hub, while high sulphur fuel oil (HSFO) was little changed despite some active spot trading.
Singapore’s 0.5% VLSFO cash premium MFO05-SIN-DIF eased to $6.98 a metric ton, while cracks LFO05SGDUBCMc1 were at about $10.50 a barrel.
Total fuel oil supplies to Asia are pegged between 5.5 million tons to 6.0 million tons for December, higher compared with November, based on assessments by LSEG Oil Research this week.
Supply inflows from all regions, including arbitrage barrels from the West, the Middle East and within Asia, are expected to breach volumes from the previous month, LSEG data showed.
Meanwhile, spot trade for 380-cst HSFO continued to emerge, though cash differentials FO380-SIN-DIF held relatively stable, while refining cracks FO380DUBCKMc1 rose to discounts of $9.84 a barrel.
BUNKER UPDATES
Singapore-based container shipper X-Press Feeders plans to use green methanol bunker to fuel part of its fleet in Europe in the second quarter of 2024, a senior executive said on Tuesday.
X-Press Feeders, which operates more than 100 vessels globally, has ordered 14 dual-fuel ships that can burn methanol and conventional bunker fuel.
The company will receive eight vessels in 2024, while the remaining six will be delivered in 2025-2026. These ships will ply routes from Rotterdam to ports in Scandinavia and the Baltic states.
Source: Hellenic Shipping News
