Asia’s spot premium for very low sulphur fuel oil (VLSFO) fell to a six-week low on Monday as competitive offers weighed on the market.
The Singapore cash premium for VLSFO was pegged below $6 a metric ton, though backwardation in prompt trading months held stable. The market has recently pared gains on expectations of steady to heavier supplies into the year-end.
In contrast, the high sulphur fuel oil (HSFO) market continued to retain strength, with cash premiums for both 180-cst and 380-cst grades extending gains on stronger bids.
Refining margins were largely stable from the previous trading day, with VLSFO cracks closing below premiums of $13 a barrel, while 380-cst cracks closed at discounts of about $5 a barrel, based on LSEG’s Dubai-basis cracks at 0830 GMT.
FUJAIRAH BUNKER SALES
Marine fuel sales at Fujairah rebounded in October versus September, but posted a year-over-year decline for a fourth straight month, the latest data showed.
Sales volumes excluding lubricants totalled 635,471 cubic metres (about 629,500 metric tons) in October, showed Fujairah Oil Industry Zone data published by S&P Global Commodity Insights, up 3.3% month-on-month but down 2.9% year-on-year.
Ongoing geopolitical tensions in the Middle East have affected refuelling demand in the region over the past months, trade sources said.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Shreya Biswas)
