Asia’s spot market for very-low sulphur fuel oil (VLSFO) softened for a second consecutive session on Wednesday, a sign that the recent rally has started cooling off.
Trading house Gunvor bought the product at a lower premium from the previous day, while multiple offers continued to emerge from other trading houses.
Singapore’s cash premium for 0.5% VLSFO (MFO05-SIN-DIF) was pegged lower at $17.68 a metric ton to cargo quotes, while the front-month July/August backwardation time spread narrowed to $17.05 a ton at the Asia close (0830 GMT).
The product’s front-month refining margin (LFO05SGDUBCMc1) also eased, closing at a premium of $13.14 a barrel on Wednesday.
Kuwait’s Al Zour recently closed its term tender at a discount narrower than $20 a tonne to 0.5% VLSFO cargo quotes, on a free-on-board basis, trade sources said.
Asia’s high sulphur fuel oil (HSFO) market remains range-bound in thin trading momentum. The spot 380-cst HSFO cash premium (FO380-SIN-DIF) was pegged at $2 a ton on Wednesday, while the front-month refining margin (FO380DUBCKMc1) closed higher at a discount of $8.47 a barrel.
Source: Hellenic Shipping News
