Asia’s prompt market for high sulphur fuel oil (HSFO) continued to recover into narrower discounts, though the forward market was stuck steadily in contango into the first-half of next year, a sign that spot bearishness could persist.
Singapore’s 380-cst HSFO spot differential climbed from the previous session to a $3 discount on Monday, with bids and offers seen at equivalent values. Timespreads for the product were, however, pegged in contango for the next six months, data from LSEG showed.
While Middle Eastern fuel oil arrivals are expected to decline this month versus the previous one, current supply inventories in Southeast Asia remained high and will continue to limit gains in the market.
Meanwhile, very low sulphur fuel oil (VLSFO) was steady in a quiet market, with bids and offers trapped in a narrow range.
Cracks were slightly higher, with VLSFO (LFO05SGBRTCMc1) closing at a premium near $4.40 a barrel on Monday, while 380-cst HSFO crack (FO380BRTCKMc1) was at a discount of about $7.80 a barrel, data compiled by LSEG showed.
BUNKER SALES
Singapore’s marine fuel sales in November were largely unchanged from the previous month, official data showed on Monday. Some aggressive selling last month dampened price premiums but led to higher sales, market sources said.
Sales totalled 4.82 million metric tons in November, up 0.1% month-on-month, though rising 8.0% year-on-year, according to the Maritime and Port Authority of Singapore.
Source: Reuters
