Asia’s cash differential for very-low sulfur fuel oil (VLSFO) slumped into a deeper discount to Singapore quotes on Tuesday, as sellers continued to lower offers for early August.
The 0.5% VLSFO cash differential was pegged at a discount of 94 cents a metric ton to Singapore quotes, though the front-month crack rebounded day-on-day to a premium of $7.28 a barrel.
The market remains underpinned by an influx of supplies. Fuel oil flows landing East, most of which come to Singapore, are expected between 5.5 and 6.0 million tons in July, based on the latest assessments by Refinitiv Oil Research. This compared steady to a four-month high in June.
Meanwhile, the high sulfur fuel oil (HSFO) market showed signs of cooling after its recent spike.
The cash differential for 380-cst HSFO was pegged at a premium of $12.58 a ton, while the front-month crack edged slightly higher to a discount of $8.15 a barrel.
In tenders, Taiwan’s CPC is seeking 40,000 tons of low-sulfur fuel oil for September delivery. The tender closes on Tuesday.
Source: Hellenic Shipping News
