Cash premium for 380-cst high sulphur fuel oil (HSFO) closed at its highest in more than a month on Friday, buoyed by supply uncertainty over recent sanctions.
Singapore’s 380-cst HSFO cash premium traded above $9 a metric ton to cargo quotes, while margins also retained strength. Brent-basis cracks extended their climb to discounts of about $4 per barrel, based on LSEG data. (FO380BRTCKMc1)
The strength was largely centred on the high-sulphur market, as risks and logistical challenges to Russian HSFO supplies kept sentiment supported.
The low-sulphur market was rangebound amid thin trade, though buying interest from several trading houses was present in the spot market.
Cash premium for very low sulphur fuel oil (VLSFO) ended the week at levels near $6 per metric ton, while cracks held at premiums of about $11 per barrel. (LFO05SGBRTCMc1)
The premium of VLSFO over 380-cst HSFO, also known as the hi-5 (FO05-380SGMc1), narrowed by more than 6% week-on-week to about $96 a ton by Friday, amid the HSFO strength.
Meanwhile, Thailand’s PTT offered two HSFO cargoes for loading from Sriracha in February. The tender closes on Jan. 21, based on industry sources.
INVENTORY DATA
– Fuel oil inventories in the ARA (STK-FO-ARA) dipped 0.5% to 1.45 million tons in the week to Jan. 16, data from Dutch consultancy Insights Global showed.
