Spot benchmarks for fuel oil ended the week on a steady to softer note, while bids and offers were mostly rangebound from the previous session.
Singapore cash differential for very low sulphur fuel oil (VLSFO) was pegged at a premium of $2 a metric ton to cargo quotes on Friday, little changed from Thursday. (MFO05-SIN-DIF)
Meanwhile, spot deals softened for 380-cst high sulphur fuel oil (HSFO), with the product trading lower at a premium of $6.50 a metric ton to cargo quotes. (FO380-SIN-DIF)
However, the HSFO market structure retained support, with intermonth backwardation widening at the prompt months amid active buying interest for cracks, a derivatives trader said.
Singapore 380-cst HSFO cracks (FO380DUBCKMc1) closed at discounts of about $5.65 per barrel, while VLSFO cracks (LFO05SGDUBCMc1) held at premiums above $10 per barrel, according to LSEG data.
In tenders, wider discussions remained largely thin. Taiwan’s CPC offered 22,000 tons of catalyst fractionator bottom for loading in January. The tender closes on Jan. 3 with validity until Jan. 7, a document on its website showed.
Source: Reuters
