Asia’s hi-5 fuel oil spread widened by over 2% week-on-week, reflecting a softer market for high sulphur fuel oil (HSFO), while the very low sulphur fuel oil (VLSFO) market trended steady to slightly firmer this week.
The premium of VLSFO over 380-cst HSFO, also known as the hi-5 (FO05-380SGMc1), closed at more than $100 a metric ton on Friday, based on LSEG data at Asia close (0830 GMT).
The spread, which can affect bunkering economics, has been hovering at narrower premiums of below $100 between late-2024 and early-2025.
Meanwhile, cash premiums for VLSFO and HSFO were largely stable on Friday due to thin trading momentum, while fuel oil margins held rangebound versus the previous week.
Singapore 380-cst HSFO cracks (FO380DUBCKMc1) closed at discounts of about $5.70 per barrel, while VLSFO cracks (LFO05SGDUBCMc1) closed near premiums of $10.50 per barrel.
INVENTORY DATA
– Fuel oil inventories in the ARA (STK-FO-ARA) fell 1.2% to 1.46 million tons in the week to Jan. 9, data from Dutch consultancy Insights Global showed.
