Cash premiums for Very Low Sulphur Fuel Oil (VLSFO) steadied in Asia on Monday, while premiums for High Sulphur Fuel Oil (HSFO) continued to fall amid tepid demand for secondary feedstock in China, traders and analysts said.
Cash premiums for VLSFO cargoes changed slightly, to $4.47 per metric ton. HSFO cash premiums for 180-cst grade tumbled 76 cents to $3.24 per ton, while 380-cst grade slipped 27 cents to $4.18 a ton.
Meanwhile, Taiwan’s CPC offered 38,000 tons of fuel oil for loading during August in a tender that closes on Aug. 7, the company said in a document.
Energy consultancy FGE estimated that in the weeks ahead, Singapore VLSFO cracks could stay elevated relative to July’s average of $4.5 per barrel in tandem with gasoline cracks.
“The current weaker flat price could also encourage opportunistic purchases by shipowners, but this will be offset by higher LSFO inflows to Singapore in the second August and September, which could lead to inventory builds,” FGE said in a note late Friday.
Source: XM
