Spot premium for Very Low Sulphur Fuel Oil (VLSFO) trended lower in Asia on Thursday as offers for prompt loading dates remained competitive, while onshore inventories and imports into Singapore storage climbed, data showed on Thursday.
Ample prompt supply has been capping recovery in price benchmarks, market sources said. Refining margins for VLSFO remained below $11 per barrel for the second consecutive day.
Meanwhile, High Sulphur Fuel Oil (HSFO) firmed amid stronger bidding action. The cash premium was pegged at $4.50 a metric ton, while refining cracks climbed nearer to discounts of $6 per barrel.
However, the availability of spot supplies continue to limit strength in the market, according to sources.
In tenders, India’s HPCL offered three HSFO cargoes scheduled to load from Vizag between July 24-26, Aug. 3-5 and Aug. 13-15, based on shipping records. The tender closes on Thursday.
Current inventory levels remained ample to meet market demand. Onshore fuel oil stockpiles in Singapore edged up to a two-week high, while net imports recovered for a second straight week, data showed.
The August hi-5 fuel oil spread narrowed for a second consecutive session to $108 per ton on Thursday, amid the weaker VLSFO complex and a relatively supported HSFO market.
Source: Hellenic Shipping News
