Asia’s very low sulphur fuel oil (VLSFO) market continued to weaken on Friday, while the hi-5 spread narrowed from the previous week.
Singapore cash premium for VLSFO traded lower at $1 a metric ton for mid-August loading dates, while spot offers for dates into late-August were also steady to softer.
The broader market is still underpinned by supply pressure, with Asia set to receive ample arbitrage cargoes for August.
Spot benchmarks for 380-cst high sulphur fuel oil (HSFO) held rangebound in discounts amid thin trade, even as more bids and offers emerged for August loading.
A weaker VLSFO market has weighed on the hi-five in recent sessions, with the spread (FO05-380SGMc1) closing at $82 a metric ton on Friday, crunching week-on-week, LSEG data showed.
INVENTORY DATA
– ARA fuel oil inventories (STK-FO-ARA) fell 1.7% to 0.98 million tons in the week to July 31, based on data from Dutch consultancy Insights Global.
WINDOW TRADES
– 180-cst HSFO: No trade – 380-cst HSFO: No trade – 0.5% VLSFO: One trade Source: Reuters
