Spot premium for very low sulphur fuel oil (VLSFO) eased on Tuesday, with offers retreating for November loading dates, while Asia received an influx of supply arrivals this month, ship-tracking data showed.
Incoming supplies to Asia, including western arbitrage barrels, Middle eastern barrels and intra-regional barrels, totalled nearly 7.9 million metric tons, calculations based on LSEG ship-tracking data showed.
This marked the highest monthly volume to Asia since March, based on historical data. Arrivals from the main supply regions all recovered month-on-month.
Price benchmarks for VLSFO have been capped despite some uptick. Singapore’s VLSFO cash premium was pegged lower at $10.25 a metric ton on Tuesday, while prompt-month cracks softened day-on-day to premiums of about $14.25 a barrel, based on LSEG’s data at 0830 GMT.
In contrast, high sulphur fuel oil (HSFO) retained its recent strength, with prompt-month 380-cst HSFO cracks closing at discounts near $2 a barrel.
The hi-5 spread narrowed further day-on-day to about $105 a metric ton, reflecting a HSFO market that has firmed and a VLSFO market that has pared its recent gains.
On the tenders front, Thailand’s PTT offered 30,000 to 50,000 tons of long residue for loading in November, while Taiwan’s CPC offered 36,000 tons of catalyst fractionator bottom for November. Both tenders closed on Tuesday.
PORT UPDATES
Singapore’s Maritime and Port Authority (MPA) said on Tuesday that an oil spill that took place in the city-state’s waters during the refuelling of a ship has been contained.
About 5 tons of oil was spilled during bunkering operations involving the Bahamas-flagged bulk carrier Ines Corrado and a licensed bunker tanker on Oct. 28 in the waters off Changi in eastern Singapore, MPA said in a statement.
Source: Reuters
