Refining margins for very low sulphur fuel oil (VLSFO) extended gains on Tuesday amid persisting tight supplies, market participants said.
Singapore’s December 0.5% VLSFO crack closed at a premium of $13.94 a barrel, up from $12.85 on Friday, LSEG data showed. Markets were closed on Monday on account of a public holiday.
The term tender from Kuwait’s Al Zour refinery raised market expectations that stockpiling at the Doha and Al-Zour power plants will last until at least December, which will keep VLSFO exports from the Al-Zour refinery low, analysts at energy consultancy FGE said in a client note.
Cash premium for 0.5% VLSFO inched lower to $29.50 a metric ton on Tuesday from $29.75 in the earlier session.
In tenders, Bangladesh Petroleum Corp (BPC) sought 200,000-275,000 metric tons of 180-cst high sulphur fuel oil for delivery between January and June 2024, a tender document on the country’s government website showed on Tuesday.
The tender closes on Nov. 16, with validity of up to Jan. 31 next year.
Source: Hellenic Shipping News
