SINGAPORE: Asia’s cash differentials for fuel oil retreated on Monday amid thin trade, while backwardation in the market narrowed from the previous week.
Selling interest is expected to persist in the very low sulphur fuel oil (VLSFO) market, as traders sought to clear off inventories amid a back-wardated market before the year ends.
The 0.5% VLSFO cash differential dipped 19 cents to a premium of $4.83 per tonne to Singapore quotes on Monday. The market has remained steadily in single-digit premiums last week.
Meanwhile, the high sulphur fuel oil market (HSFO) remains amply supplied. Arrivals of Russian barrels into Asia are expected to be consistent, industry sources said.
Reflecting a weaker market structure, the 180-cst HSFO cash differential flipped back into a discount to Singapore quotes after holding in a slight premium, while the 380-cst HSFO cash differential fell $1.33 to a premium of $1.74 per tonne.
Marine fuel sales in Singapore surged to a one-year high in October, latest official data showed, as more competitive prices attracted ships to refuel at world’s top bunkering hub.
October bunker sales totalled 4.25 million tonnes, climbing 7% from September, while vessel arrivals for bunkering at Singapore rose 9% month-on-month at 3,431 vessel calls, data from Singapore’s Maritime and Port Authority showed.
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