Spot premiums for high sulphur fuel oil (HSFO) eased further in Asia on Tuesday, although backwardation retained its strength in the prompt trading months.
The March/April backwardation spread for 380-cst HSFO closed at $15.50 per metric ton on Tuesday, widening from the previous session in volatile trade, according to data from trade sources.
Buying momentum was still robust for the spread despite softer premiums in the spot market in recent sessions, a fuel oil trader said.
Meanwhile, the very low sulphur fuel oil (VLSFO) market has been skewed to the downside lately, but a lack of fresh drivers kept benchmarks rangebound on Tuesday.
Cracks for VLSFO closed at premiums of about $11.40 per barrel, while cracks for 380-cst HSFO closed near discounts of 65 cents a barrel.
Separately, Taiwan’s Formosa offered main column bottoms for loading in March in a recent tender.
WINDOW TRADES
– 180-cst-HSFO: No trade
– 380-cst-HSFO: No trade
– 0.5%-VLSFO: No trade
Source: Reuters
