The cash premium for 0.5% very low sulphur fuel oil (VLSFO) edged lower for an eighth consecutive trading day, while inventories extended a build up at key trading hub Singapore.
Despite lower weekly imports, onshore fuel oil inventories hit one-month highs in Singapore, latest data showed on Thursday, while overall supplies remained ample in the Asia region.
The 0.5% VLSFO cash premium MFO05-SIN-DIF slipped further to $14 a metric ton on Thursday, while the refining margin LFO05SGDUBCMc1 closed at a premium of $10.17 a barrel.
Meanwhile, high sulphur fuel oil (HSFO) was little changed on the back of thin activity.
The 380-cst HSFO cash differential FO380-SIN-DIF continued to hold in a discount.
Refining margin for the HSFO grade FO380DUBCKMc1 fell to a discount of $16.88 a barrel at the Asia close amid a backdrop of bearish factors.
SINGAPORE INVENTORIES O/SING1
Onshore fuel oil inventories STKRS-SIN rose 0.7% to 19.54 million barrels (3.08 million metric tons) in the week to Oct. 25, data from Enterprise Singapore showed.
Earlier this month, a stronger market backwardation had spurred selling interest and discouraged storage, though the backwardation had narrowed in recent trading sessions.
However, a sharp drop in net fuel oil imports capped the extent of the weekly inventory build up. Net imports fell by nearly 75% week-on-week to 233,000 tons.
Source: Hellenic Shipping News
