The cash premium for very low sulphur fuel oil (VLSFO) in Asia eased on Monday after hitting a year-to-date high last week, even as market backwardation remained firm for prompt months.
Singapore’s 0.5% VLSFO cash premium inched lower at $28.75 a metric ton on Monday, snapping an uptrend that lasted for six consecutive sessions.
However, refining margin edged higher to a premium of $10.86 a barrel at the Asia close, while market backwardation continued to widen.
The balance-month/Dec timespread for 0.5% VLSFO widened $2 from last week, hitting $33 a ton on Monday.
High sulphur fuel oil (HSFO) continued to log a gradual rebound. The cash differential for 380-cst HSFO climbed to a premium of $1.50 a ton, while refining margin steadied at a discount of $14.57 a barrel.
In tenders, Taiwan’s Formosa offered 40,000 tons of low sulphur fuel oil for loading at Mailiao, between Nov. 18 and 19. The tender closes on Monday.
Source: Hellenic Shipping News
