Fuel oil cracks pared strength on Wednesday after a recent rally, while spot trade remained largely thin in the week.
Singapore 380-cst high sulphur fuel oil (HSFO) Brent-crack dipped towards premiums of 40 cents a barrel after hitting its recent high of over 80 cents the previous day.
Meanwhile, cracks for very low sulphur fuel oil (VLSFO) held steady at premiums near $12 a barrel.
Backwardation for HSFO retained support. Spot trade was largely thin, with premiums hovering above a floor amid the strength in market structure.
Some factors capped gains in the market, including bearish demand for feedstock imports from China, as well as the lack of clear supply disruption, market sources said.
FUJAIRAH DATA
– Fujairah heavy fuel inventories jumped 25.5% to 10.23 million barrels (1.61 million tons) in the week to Feb. 10, breaching eight-month highs, showed FOIZ data published by S&P Global Commodity Insights.
