Asia’s hi-5 fuel oil spread narrowed further on Wednesday as the very low sulphur fuel oil (VLSFO) held onto a bearish tone.
The hi-5, which reflects the premium of VLSFO over 380-cst HSFO, closed at about $72 a metric ton, based on LSEG data.
The spread has shown signs of narrowing in recent sessions as VLSFO remained under pressure in oversupply.
Meanwhile, cracks also traded lower on Wednesday.
October crack for VLSFO softened day-on-day to a premium below $7 a barrel, while 380-cst HSFO crack eased to a discount near $4.50 a barrel.
WINDOW TRADES
– 180-cst HSFO: No trade – 380-cst HSFO: No trade – 0.5% VLSFO: No trade
Source: Reuters
