Asia’s very low sulphur fuel oil (VLSFO) market extended gains on Tuesday amid a tighter supply outlook, with market backwardation remaining strong.

The cash premium for 0.5% VLSFO firmed for a fifth consecutive session at $16.74 a metric ton on Tuesday, while November crack edged higher to a premium of $9.27 a barrel.

Market backwardation held steadily strong, with the October/November timespread closing at $21.50 a ton at the Asia close, hitting about four-month highs.

In contrast, 380-cst high sulphur fuel oil trended softer, with cash premium sliding to $2.95 a ton, while November crack slipped to a discount of $15.42 a barrel.

In tenders, Malaysia’s RAPID offered 55,000 barrels of slurry for loading from Pengerang between Oct. 26 and 27. The tender closes on Tuesday.

Source: Hellenic Shipping News