Asia’s spot discounts for high sulphur fuel oil (HSFO) deepened on Thursday, while very low sulphur fuel oil (VLSFO) market was largely stable.
Singapore 380-cst HSFO traded at a wider discount of $3.50 a metric ton to cargo quotes. The prompt market remains well-supplied, leading to a slew of offers from various trade participants.
Meanwhile, trading momentum for VLSFO remained thin, as bids and offers were stuck in a stand-off as with previous sessions.
High inventories of fuel oil in the Singapore storage hub continued to limit recovery in the markets.
Inflows into onshore tanks rose week-on-week, with Brazil, Russia and the United Arab Emirates as the top origins for supply.
Meanwhile, fuel oil cracks remained under pressure. VLSFO crack (LFO05SGBRTCMc1) held near a premium of $4 a barrel, while 380-cst HSFO crack (FO380BRTCKMc1) fell to a discount wider than $8.50 a barrel, data compiled by LSEG showed.
