SINGAPORE: Asia’s cash premiums for 380-cst high-sulphur fuel oil (HSFO) rose for a third straight session on Wednesday to hit a fresh high since November 2019, lifted by strong demand amid limited supplies.
The cash differentials for 380-cst HSFO rose to a premium of $30.17 per tonne to Singapore quotes, up from $25.31 per tonne a day earlier.
Cash premiums for 180-cst HSFO soared to $46.82 per tonne to Singapore quotes on Wednesday, compared with $40.15 a tonne on Tuesday.
“HSFO pricing benchmarks in Asia have retained a strong rally amid a combination of bullish factors – including rising seasonal demand from South Asia for power generation, the widespread contamination of high-sulphur bunker fuel in Singapore, and a tighter global HSFO supply pool following Russia’s invasion of Ukraine,” Refinitiv Oil Research analysts said in a note. Meanwhile, cash premiums for Asia’s 0.5% VLSFO slipped to $19.26 a tonne to Singapore quotes on Wednesday, compared with $20.92 per tonne a day earlier.
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