Spot premiums for Very Low Sulphur Fuel Oil (VLSFO) climbed to a three-week high on Tuesday as firmer bids emerged for July loading dates, though trade remained largely quiet.
The cash premium for the product was pegged at $3.25 a metric ton on Tuesday after holding in a tight range of $1 to $2 a ton for more than two weeks.
Refining cracks for the low-sulphur grade also climbed day-on-day to premiums above $10 a barrel.
In contrast, benchmarks for the high-sulphur grade (HSFO) remained under pressure as supply tightness saw some relief.
The 380-cst HSFO cash premium dipped to $7.60 a ton as offers trended lower, while cracks slipped below discounts of $6 a barrel.
Total incoming supplies to Asia breached 5.5 million tons in June, higher from about 5.3 million tons in May, LSEG ship-tracking data showed as of Tuesday.
Meanwhile, about 2.5 million tons are slated to arrive in July, with more loadings to emerge in the coming weeks, the data showed.
Source: Hellenic Shipping News
