SINGAPORE: Asia’s front-month crack for 0.5% very low-sulphur fuel oil (VLSFO) slipped on Tuesday, while cash premiums for the marine fuel grade fell on a weaker deal in the physical market.
The front-month VLSFO crack fell to $22.67 per barrel against Dubai crude during Asian trading hours, compared with $23.85 per barrel a day earlier.
The crack has averaged $22.59 a barrel so far this month, compared with $25.95 in March, Refinitiv data showed.
The front-month time spread for VLSFO widened its backwardated structure on Monday to trade at $25 a tonne, compared with $24.50 per tonne on Monday.
Cash differentials for Asia’s 0.5% VLSFO were at a premium of $20.92 a tonne to Singapore quotes, down from $22.16 per tonne on Monday.
Meanwhile, Asia’s cash premiums for 380-cst high sulphur fuel oil (HSFO) surged to $25.31 per tonne to Singapore quotes, a fresh peak since November 2019. They were at a premium of $24.58 per tonne on Monday.
The cash differentials for 180-cst HSFO rose by 65 cents to a premium of $40.15 per tonne to Singapore quotes, the highest level in more than two years.
One 380-cst high-sulphur fuel oil (HSFO) deal, no 180-cst HSFO trades. One VLSFO trade was reported.
Oil prices slipped in volatile trading on Tuesday as investors weighed demand concerns against tight global supplies after Libya halted some exports and as factories in Shanghai prepared to reopen following a COVID-19 shutdown.
Libya’s National Oil Corp warned of a “painful wave of closures” and declared force majeure on some output and exports as forces in the east expanded their blockade of the sector over a political standoff.
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