Spot premium for high sulphur fuel oil (HSFO) posted further gains on Monday, while very low sulphur fuel oil (VLSFO) premium continued to soften from the previous week.
The 380-cst HSFO complex has received a boost in recent sessions, led by bullish buying in the derivatives market. Cracks remained in premiums to Brent quotes (FO380BRTCKMc1), while retaining narrow discounts to Dubai.
In contrast, VLSFO remained under pressure due to weak refuelling demand from the ship bunkering sector, with spot offers easing day-on-day.
The hi-5, which reflects the premium of VLSFO over 380-HSFO, remained stuck below $70 a metric ton at the prompt contract and held at multi-year lows, based on LSEG data.
Meanwhile, India’s BPCL offered 20,000 tons of HSFO for loading in March, based on data from trade sources. The tender closes on Tuesday.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters
