Asia’s high sulphur fuel oil (HSFO) spot market widened on discounts on Monday, while the market structure deepened on contango for the prompt months.
Singapore 380-cst HSFO cash differential was pegged at a discount wider than $7 a metric ton, while the intermonth spread between balance-July and August softened to a contango of $5.75 amid sell-offs.
HSFO cracks also slumped, closing near discounts of $5 a barrel.
The market in Asia is well supplied for the month. This has been weighing on spot benchmarks, despite July being a seasonally strong period for summer demand in the Middle East.
Meanwhile, the very low sulphur fuel oil (VLSFO) market also softened, with cash premiums extending a slide from last week, while margins held range-bound near $10 a barrel amid limited fresh drivers.
The hi-5 spread (FO05-380SGMc1), which reflects the premium of VLSFO over 380-cst HSFO, widened beyond $96 a metric ton, the highest since January, LSEG data showed.
BUNKER DATA
Sales of marine bunker fuel in Singapore dipped slightly in the first half of 2025, official data showed on Monday, as shipping uncertainties in the wake of global tariffs capped demand, particularly in the first quarter.
Meanwhile, alternative fuel sales – which include liquefied natural gas and bio-blended marine fuels – more than doubled to over 1 million tons in just half a year, the data showed.
WINDOW TRADES
– 180-cst HSFO: One trade – 380-cst HSFO: No trade – 0.5% VLSFO: No trade
Source: Reuters
