Asia’s very low sulphur fuel oil (VLSFO) market softened on Tuesday after Kuwait’s Al Zour refinery issued a fuel oil sales tender for the first time in more than two months.
The refinery offered 120,000 to 140,000 metric tons of 0.5% VLSFO for loading between September 9 and 10, in a tender that closes on Tuesday, traders said.
The refinery last closed a term tender offering VLSFO for loading between July and December, while spot tenders quietened down after that.
Asia’s 0.5% VLSFO crack for September LFO05SGDUBCMc1 slipped day-on-day at a premium of $11.33 a barrel by 0830 GMT, while spot cash differential MFO05-SIN-DIF fell to a premium of $6.50 a metric ton.
High sulphur fuel oil (HSFO) also retreated, with the product trading at a lower premium to Singapore quotes for end-September loading.
The 380-cst HSFO cash differential FO380-SIN-DIF fell to a premium of $9 a metric ton, though September crack FO380DUBCKMc1 was little changed at a discount of $6.31 a barrel.
Source: Hellenic Shipping News
