Spot premiums for Very Low Sulphur Fuel Oil (VLSFO) firmed in Asia on Wednesday, led by higher-priced bids for cargoes loading in August, though broader fundamentals were largely stable.
Singapore’s VLSFO cash premium was pegged at $5.85 a metric ton, while cracks for August LFO05SGDUBCMc1 were slightly changed at premiums of about $10.50 per barrel.
However, trade sources said, supplies for bunkering remained ample in Singapore, with spot premiums for delivered VLSFO remaining trapped near $10 per ton for several weeks.
Meanwhile, High Sulphur Fuel Oil (HSFO) benchmarks were largely rangebound on Wednesday, with 380-cst cracks FO380DUBCKMc1 staying near discounts of $5 per barrel.
BUNKER SALES
The latest data from Fujairah Oil Industry Zone (FOIZ) published by S&P Global Commodity Insights showed that bunker sales slipped to a seven-month low in June.
The monthly volume eased 0.8% from May to about 605,000 tons in June but was up 0.9% from the same month last year.
Total sales in the first half of 2024 were at 3.8 million tons, up 8% from the same period in 2023, as broader shipping tensions in the Red Sea lifted bunkering demand at key ports.
However, sales weakened recently as fuel oil supply tightened due to robust summer demand. At the same time, lower prices at the neighboring port, Khor Fakkan, continue to draw away some buying interest from Fujairah.
Source: XM
