Spot differential for Asia 380-cst high sulphur fuel oil (HSFO) flipped from a discount into a premium on Wednesday, while prompt market structure remained relatively strong.
Singapore’s 380-cst HSFO cash differential was pegged at a premium of 25 cents a metric ton, after hovering in discounts for more than 14 weeks, pricing data showed.
Some bids for February-loading parcels have been inching higher, while the February/March timespread for 380-cst HSFO continued to hold strong above $7 a metric ton.
Meanwhile, spot premium for very low sulphur fuel oil (VLSFO) was largely rangebound, though bids and offers for prompt loading dates increased day-on-day.
Cracks for fuel oil also trended in mixed directions. HSFO’s crack (FO380BRTCKMc1) was stronger at a discount near $6.40 a barrel, while VLSFO’s crack (LFO05SGBRTCMc1) slipped to a premium of $3.75 a barrel, showed LSEG data.
FUJAIRAH DATA
– Fujairah heavy fuel inventories (FUJHD04) rose 1.4% to 10.18 million barrels (1.60 million tons) in the week to January 19, FOIZ data published by S&P Global Commodity Insights showed.
WINDOW TRADES
– 180-cst HSFO: No trade – 380-cst HSFO: No trade – 0.5% VLSFO: No trade Source: Reuters
