Spot trading momentum for fuel oil slowed on Wednesday following several sessions of brisk activity, with the high sulphur fuel oil (HSFO) market finding a floor after its recent declines.
The Singapore 380-cst HSFO cash differential rebounded to a discount narrower than $7 a metric ton, after hitting a multi-year low in the previous session.
Meanwhile, cash differential for very low sulphur fuel oil (VLSFO) was pegged near parity, broadly stable from the previous session.
Downstream bunker premiums for VLSFO were at premiums below $10 a ton over cargo quotes as of Wednesday, slightly softer from the previous week, based on data from market sources.
Cracks for both HSFO and VLSFO traded lower from the previous day amid supported crude prices. VLSFO’s crack dipped below a premium of $4 a barrel, while 380-cst HSFO’s crack closed near a discount of $7.85 a barrel, data compiled by LSEG showed.
INVENTORY DATA
– Fujairah heavy fuel inventories rose 11.9% to 12.5 million barrels (1.97 million tons) in the week to December 1, showed FOIZ data published by S&P Global Commodity Insights.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters
