Asia’s market structure for high sulphur fuel oil (HSFO) softened into contango on Monday as ample prompt supply outpaced a lukewarm demand recovery from feedstock and bunker buyers, traders said
The cash differential for very low sulphur fuel oil (VLSFO) stayed at a discount wider than $3 a metric ton, while 380-cst HSFO was also pegged near parity to discounts.
Cracks for VLSFO (LFO05SGBRTCMc1) hovered below a premium of $7 a barrel, while 380-cst HSFO crack (FO380BRTCKMc1) closed at a discount of $4.45 a barrel, data compiled by LSEG showed
In tenders, Taiwan’s CPC offered LSFO for loading in December. The tender closes on Tuesday and is valid until Thursday, its website showed.
BUNKER SALES
Sales of marine bunker fuel in Singapore fell to a three-month low in September, following a surge in August, although they remained above typical averages, official data showed Tuesday.
Residual bunker volumes logged monthly declines, while total marine gasoil sales inched slightly higher from August. Meanwhile, sales of alternative fuels dipped slightly in September following strong performance in the previous month.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters
