The recent rally in Asia’s very-low sulfur fuel oil (VLSFO) paused on Tuesday after more spot offers emerged, though premiums remained strong.
Trading house Gunvor continued buying the product at firm premiums for July loading, while several offers emerged from other trading houses on the Platts window.
The cash premium for 0.5% VLSFO (MFO05-SIN-DIF) was pegged at $19.72 a metric ton over Singapore quotes on Tuesday, after spiking sharply in the previous day.
Meanwhile, the front-month refining margin (LFO05SGDUBCMc1) closed relatively steadily at a premium of $13.91 a barrel at the Asia close (0830 GMT).
The market structure continued to widen, with the front-month July/August backwardation time spread firming to $19.45 a ton at Asia close.
Separately, Asia’s high sulfur fuel oil (HSFO) market was stable in comparison. The spot 380-cst HSFO cash premium (FO380-SIN-DIF) was pegged unchanged at $1.93 a ton, while the front-month refining margin (FO380DUBCKMc1) closed at a discount of $9 a barrel at the Asia close.
Source: Hellenic Shipping News
