Asia’s spot market for very low sulphur fuel oil (VLSFO) eased on Wednesday, as trade participants eyed new supply drivers.
The 0.5% VLSFO cash premium for very low sulphur fuel oil (VLSFO) fell to $25.92 a metric ton, while the refining margin slipped to a premium of $14.37 a barrel.
The market had rallied last week, as it priced in a tight supply outlook following issues at Kuwait’s Al Zour refinery.
Trade participants continued to keep tabs on supply developments, which include a pending restart at the refinery, as well as a looming OPEC+ meeting that could affect upstream heavy crude supply.
Meanwhile, high sulphur fuel oil (HSFO) was quiet amid a lack of spot bids and offers. Cash differentials for 380-cst HSFO remained in discounts, while December crack rose to a value of minus $11.69 a barrel.
FUJAIRAH INVENTORIES
Fuel oil inventories at Fujairah rebounded 18.7% to 11.22 million barrels (1.77 million tons) in the week of Nov. 20, showed Fujairah Oil Industry Zone data published by S&P Global Commodity Insights.
Source: Hellenic Shipping News
