SINGAPORE: Asia’s cash premiums for 0.5% very low-sulphur fuel oil (VLSFO) rose on Tuesday, aided by active buying interests in the physical trade window, although the prompt-month spread for the marine fuel grade narrowed its backwardation.
Cash differentials for Asia’s 0.5% VLSFO were at a premium of $19 a tonne to Singapore quotes, compared with $18.17 per tonne on Monday. The March/April VLSFO time spread traded at $19.50 a barrel on Tuesday, compared with $25.75 per barrel a day earlier.
Despite weaker raw material crude prices, the front-month VLSFO crack dropped for a fourth consecutive session on Tuesday to $24.66 per barrel against Dubai crude during Asian trade, as against $27.87 a barrel on Monday.
Asia’s cash premiums for 380-cst high sulphur fuel oil (HSFO) were at $3.83 per tonne to Singapore quotes, compared with $4.34 per tonne in the previous session.
Marine fuel sales at Singapore, the world’s largest bunker hub, fell to 3.50 million tonnes in February, the lowest since February 2015, preliminary data from the Maritime and Port Authority of Singapore (MPA) showed.
The total volume of low-sulphur fuel oil (LSFO) supplied to ships dropped to 2.58 million tonnes in February, down 19% from the same month a year ago, the data showed. High-sulphur fuel oil (HSFO) sales slipped 8% to 0.92 million tonnes during the same period.
China’s daily oil processing rate dropped 1.1% in the first two months of 2022 from a year ago, to the lowest since December 2020, as independent refiners scaled back operations after Beijing slashed their crude oil import quotas.
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