Spot premiums for Asia’s high sulphur fuel oil (HSFO) market extended declines on Tuesday as softer offers emerged, while broader sentiment remained uncertain.
Russia is likely to continue exporting usual volumes of its HSFO barrels, which will eventually find their way to the receiving markets, according to industry sources.
Slower Chinese import demand also capped strength in spot HSFO benchmarks, with buying volumes from independent refiners expected to remain weak this month.
The HSFO derivatives market has been undergoing swings of volatile movements this year. In the week so far, cracks have extended declines, after rallying sharply higher last week.
Singapore prompt 380-cst HSFO/Brent crack (FO380BRTCKMc1) closed lower at a discount of near $2.15 a barrel on Tuesday, sliding for a second day, based on LSEG data.
Meanwhile, spot market for very low sulphur fuel oil (VLSFO) stayed rangebound in largely quiet trade, while refining cracks closed at premiums of about $11.30 a barrel.
In tenders, Pakistan’s PARCO is offering 50,000 tons of 180-cst HSFO for loading in early March, based on industry sources.
