Asia’s Very Low Sulphur Fuel Oil (VLSFO) market softened on Monday amid expectations of ample supply in July, while firmer bidding from a couple of trade participants tapered off recently.
The Singapore VLSFO cash premium traded lower to $4.50 a metric ton, while cracks for August dipped below premiums of $10 a barrel on Monday, down from last week, showed LSEG data.
The market rebounded last week, though the upward price action has cooled off amid a backdrop of sufficient inventories and lukewarm bunkering demand.
Trade sources are monitoring loadings from Kuwait’s al-Zour and Nigeria’s Dangote following recent fire incidents, though there is no notable disruption to exports for now.
Meanwhile, Indonesia’s Pertamina had offered more V-1250 low sulphur waxy residue for loading from Balikpapan in mid-July, shipping records showed. The company’s crude distillation unit IV is yet to restart as of late June.
High Sulphur Fuel Oil (HSFO) benchmarks held stable. Spot 380-cst premiums closed at $4.80 a ton on Monday, while cracks slipped to discounts of about $6.70 a barrel.
Source: Hellenic Shipping News
