Asia’s cash premium for 0.5% very low sulphur fuel oil (VLSFO) slipped to a two-month low on Wednesday, while high sulphur fuel oil (HSFO) extended a rebound with discounts narrowing.
Singapore’s VLSFO cash premium fell for a seventh consecutive session to $12.23 a metric ton, while cracks dipped to a premium of $10.46 a barrel.
In contrast, the HSFO market edged higher on prospects of higher uptake by China. The cash discount FO380-SIN-DIF for 380cst-HSFO narrowed to 25 cents a ton, while cracks climbed to discounts of $10.41 a barrel.
The market also kept any eye on an upcoming meeting by OPEC+ which could affect sentiment and supplies of heavy crude.
“On the HSFO side, the big factor this week will be the outcome of the OPEC+ meeting in terms of availability of residue-rich crude,” consultancy FGE wrote in a note this week.
FUJAIRAH INVENTORIES
Fuel oil inventories at Fujairah fell 15.2% to 9.51 million barrels (1.50 million tons) in the week to Nov. 27, showed Fujairah Oil Industry Zone data published by S&P Global Commodity Insights.
Source: Hellenic Shipping News
