Spot differential for Asia 380-cst high sulphur fuel oil (HSFO) was back in a thin premium on Tuesday, while market backwardation widened at the prompt months for all key grades.
The differential was near parity to cargo quotes in the last trading session, having recovered from discounts previously.
Some spot bids for HSFO edged higher this week, though broader trading momentum remained largely quiet.
Refining cracks for the product gained, with the June contracts (LFO05SGBRTCMc1) closing near premiums of $3 a barrel, based on LSEG’s data.
Meanwhile, very low sulphur fuel oil (VLSFO) market was rangebound amid an absence of fresh drivers, with cracks for VLSFO holding above premiums of $12 a barrel.
REFINERY UPDATES
– Chevron is attempting to restart the El Segundo, California refinery after taking units offline last week, sources familiar with plan operations said.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters
