Spot premium for Very Low Sulphur Fuel Oil (VLSFO) hit its highest level in more than nine months on Monday, with firm-priced trades emerging in Asia.
The premium was pegged at $15.35 per metric ton to Singapore quotes, the highest since end-November 2023, data showed.
Front-month backwardation also remained wide, pegged at levels above $18 per ton for the balance-September/October contract on Monday.
The VLSFO market has received a boost recently amid tighter supply for prompt dates, market sources said.
Meanwhile, benchmarks for High Sulphur Fuel Oil (HSFO) also rallied higher on Monday, led by firmer sentiment in the VLSFO market.
In tenders, India’s IOC offered another 25,000 tons of HSFO for September loading, market sources said.
The cargo is scheduled to load from Chennai port between Sept. 21 and 22.
Source: XM
