Fuel oil markets were largely stable in Asia on Monday against a backdrop of thin trading momentum, while spot tender discussions have also quietened.
Intermonth spreads for high sulphur fuel oil (HSFO) traded at a narrower backwardation for the prompt months, while 380-cst cracks eased slightly but remained in premiums.
The market remains well-supplied due to a heavy supply influx from last month, which has capped recovery in benchmarks, though industry sources expect some strength to emerge due to seasonal summer demand.
Meanwhile, the very low sulphur fuel oil (VLSFO) market was broadly unchanged on Monday.
The outlook remains cautious ahead of the new Mediterranean emission control area regulation, which comes into place starting from May and will impact bunker trading dynamics.
REFINERY UPDATES
– U.S. crude oil refiner Phillips 66 plans to operate its refineries in the mid-90% range of combined capacity of 1.5 million barrels per day in the second quarter.
Source: Reuters
