SINGAPORE: Asia’s very low sulphur fuel oil premium fell for a third straight day, while fuel oil inventories at UAE’s Fujairah climbed by more than 50% week-on-week.
Fujairah inventories were at 12.31 million barrels (1.94 million tonnes), hitting a ten-week high amid an uptick in supply inflows.
“The consistent flow of Russian fuel oil cargoes to the region continues. Saudi Arabia and UAE remain key off-takers of Russian fuel oil cargoes arriving directly from Russian ports,” said Bharat Rajpurohit, MENA analyst for fuel oil at Refinitiv.
Despite a jump in inventories, fuel oil exports from the Middle East to Singapore remained strong in the month, Refinitiv ship-tracking data showed, while Western supplies flowing to Asia also firmed month-on-month.
The 0.5% VLSFO cash differential slid further to three-month lows on Wednesday, hitting $6.50 a tonne over Singapore quotes.
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