Asia’s spot cash premium for very low sulphur fuel oil (VLSFO) reverted to a softer trend on Thursday, giving up the previous day’s gains as supplies remain ample.
The spot 0.5% VLSFO cash differential (MFO05-SIN-DIF) fell to a premium of $14.94 a tonne.
The market had been weakening compared to early February, though declines were capped after a closely watched tender in the market traded higher earlier this week.
Kuwait’s Al Zour had sold 120,000 tonnes of 0.5% VLSFO at a small premium to Singapore quotes, for loading between March 7 and 8, trade sources said. The previous VLSFO tender by Al Zour traded near parity to Singapore quotes.
Some sources said that the price level was firmer than expected, as the wider supply pool was unlikely to tighten into March. Total fuel oil supplies to Asia are estimated at above 5.5 million tonnes in February, higher from January, based on Refinitiv assessments this week.
SINGAPORE INVENTORIES
Onshore fuel oil stocks eased 2% to 20.73 million barrels (3.26 million tonnes) in the week ended Feb. 16, Enterprise Singapore data showed.
OTHER NEWS
WINDOW TRADES
– 180-cst HSFO: One trade
– 380-cst HSFO: One trade
– 0.5% VLSFO: One trade
Source: Hellenic Shipping News
