SINGAPORE: Despite absent deal activity, Asia’s 0.5% very low-sulphur fuel oil (VLSFO) cash differential for cargoes of the fuel climbed to its narrowest discount in over a month on Tuesday amid expectations of improved market fundamentals over the near term.
The VLSFO cash discount narrowed to 45 cents a tonne to Singapore quotes, up from minus 72 cents on Monday and its highest since May 4.
Similarly, cash discounts for cargoes of 380-cst high-sulphur fuel oil (HSFO) narrowed to 30 cents a tonne, its narrowest since May 7, as the prospect of extra supply coming to the market soon from Iran continued to fade with talks between the United States and Tehran dragging on.
No VLSFO or HSFO cargo trades were reported in the Singapore trading window. Hong Kong providers of shipping services are breathing a sigh of relief after authorities announced they would ease strict quarantine restrictions imposed last July on vessels calling at the Asian shipping hub, trade sources said.
From Tuesday, crew of non-cargo goods vessels visiting Hong Kong for shipping services, including bunkering and provision supplies, will be exempt from the curbs, subject to conditions, the Marine Department told shipping firms in a letter.
India’s Nayara Energy sold a 40,000 tonne cargo of 40-cst to 70-cst fuel oil with a maximum 0.2% sulphur content loading from Vadinar over June 26-30 to Gunvor at a low-teens premium to Middle East VLSFO quotes on an FOB basis.
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