SINGAPORE: Asia’s cash premiums for 380-cst high-sulphur fuel oil (HSFO) rose for a fourth consecutive session on Tuesday, surging to their highest level in more than three months.
The cash differentials for 380-cst HSFO were at a premium of $3.15 a tonne to Singapore quotes, a level not seen since Oct. 20. They were at a premium of $2.31 a day earlier.
Meanwhile, cash premiums for Asia’s 0.5% VLSFO climbed to $15.08 a tonne to Singapore quotes on Tuesday, the strongest since Feb. 3. They were at $14.93 on Monday.
The front-month VLSFO crack dipped to $19.56 a barrel against Dubai crude during Asian trading hours, down from $20.65 a day earlier.
The Baltic Exchange’s dry bulk sea freight index rose for a fifth straight session on Monday, supported by strong demand for panamax vessels, which hit a one-month high.
The overall index was up 7 points, or 0.4%, at 1,984, its highest since Jan. 12, while the panamax index gained for an eighth straight session, rising 15 points to 2,418.
Two 180-cst high-sulphur fuel oil (HSFO) deals, no VLSFO trades. An upward revision in historical oil demand by the International Energy Agency in its monthly report points to a tighter global market than the West’s energy watchdog had previously estimated.
Oil dropped from a seven-year high to about $94 a barrel on Tuesday, pressured by a report that some troops in Russia’s military districts adjacent to Ukraine are returning to bases, a move that could de-escalate tensions between Moscow and the West.
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