Asia’s high sulphur fuel oil (HSFO) market logged a narrower discount on Thursday as stronger bids emerged, though onshore inventories at Singapore storage hub remained high, capping recovery in the benchmarks.
The 380-cst HSFO cash differential rebounded for a second consecutive day to a discount narrower than $7 a metric ton, while ample selling interest limited gains.
As for very low sulphur fuel oil (VLSFO), the product traded unchanged at parity differential to cargo quotes, while bids and offers remained rangebound.
High inventories in Singapore continued to pressure the prompt markets. Onshore fuel oil stockpiles climbed to a three-week high in Singapore, breaching 25 million barrels. The top supply origin was Russia for the week, official data showed.
Cracks for HSFO and VLSFO extended declines. VLSFO’s crack (LFO05SGBRTCMc1) fell to a premium of about $3.60 a barrel, while 380-cst HSFO’s crack (FO380BRTCKMc1) slipped to a discount near $8.35 a barrel, data compiled by LSEG showed.
