SINGAPORE: Asia’s very low sulphur fuel oil (VLSFO) market kicked off the week on a steady note on Monday as tight supply capped recent declines in cash premiums, while the high sulphur fuel oil (HSFO) market extended gains on an uptick in seasonal demand.
Cash differentials for 0.5% VLSFO were at premiums of $61.36 per tonne to Singapore quotes on Monday, edging slightly higher versus $60.96 per tonne on Friday.
The market structure of 0.5% VLSFO also traded in steady backwardation, reflecting tight supply amid limited arbitrage supplies and blending components.
Meanwhile, cash discounts for HSFO continued to narrow on Monday, extending support from last week as seasonal demand from the Middle East and South Asia retained strength.
Differentials for 180-cst HSFO were at discounts of $1.73 per tonne to Singapore quotes on Monday, narrowing versus discounts of $4.92 on Friday.
Marine fuel sales at Singapore, the world’s largest bunkering hub, rebounded 10% month on month to a five-month high of 4.12 million tonnes in May, latest official data showed on Monday.
Oil dropped more than $2 on Monday as a flare-up in COVID-19 cases in Beijing dented hopes of a pick-up in Chinese demand, while worries about more interest rate hikes to control rampant inflation added further pressure.
State-controlled Russian National Reinsurance Company is now the main reinsurer of Russian ships, including Sovcomflot’s fleet, after Western insurance firms withdrew cover for Russian shipowners.
South Korea’s average daily shipments of petrochemical products have plunged by 90% since a strike by truckers in the country, the Korea Petrochemical Industry Association said on Monday.
Comments
Comments are closed.