Asia high sulphur fuel oil (HSFO) cracks remained supported in a round of strong bidding on Wednesday, trade sources said.

Singapore’s 380-cst HSFO/Dubai crack for June closed at a premium of $4.44 a barrel, holding near record highs hit last week, based on LSEG data. Meanwhile, the HSFO/Brent crack for June closed at a fresh high near $3.90 a barrel.

HSFO is expected to retain strength for June and July due to seasonal market strength for summer power burn, though the recent rally was driven more by position taking, sources said.

Spot benchmarks in Asia continued to be weighed by adequate supply availability, with HSFO cash differentials hovering near parity to cargo quotes, while bunker premiums remained under pressure.

Separately, Bahrain’s BAPCO offered a vacuum gasoil cargo for loading from Sitra between June 5 and 10, according to trade sources. The tender closes and is valid until Friday.

INVENTORY DATA

– Fujairah heavy fuel inventories (FUJHD04) rose 17.7% to 10.99 million barrels (1.73 million tons) in the week to May 19, showed FOIZ data published by S&P Global Commodity Insights.

WINDOW TRADES

 

Source: Reuters