Spot premiums for fuel oil inched higher in Asia on Monday, supported by stronger bids, though refining margins were rangebound from last week as ample inventories capped strength.
Singapore cash premium for 380-cst high sulphur fuel oil (HSFO) traded at $5 a metric ton over cargo quotes, while the premium for very low sulphur fuel oil (VLSFO) was pegged above $2 a metric ton due to a stronger bid for mid-January.
The recent uplift was largely driven by the derivatives market, which saw some buying interest strengthening for prompt intermonth spreads, trade sources said.
Margins were little changed. Singapore 380-cst HSFO cracks (FO380DUBCKMc1) held at discounts narrower than $4 per barrel, while VLSFO cracks (LFO05SGDUBCMc1) closed at premiums above $10 per barrel, based on LSEG data.
