NEW DELHI: Asia’s cash premiums for very low sulphur fuel oil (VLSFO) on Wednesday snapped their nine-day winning streak after Fujairah stocks rose to the highest level in two weeks.
The spot premium was at $23.61 a tonne to Singapore quotes, compared with $24.23 a tonne on Friday.
At the Singapore trading window, energy trader PetroChina bought 40,000 tonnes of 380-cst high sulphur fuel oil (HSFO), while bids could not match offers for VLSFO, resulting in no deals.
380-cst HSFO market also weakened with the spot premium falling by 38 cents to $4.67 per tonne to Singapore quotes.
Fuel oil stocks at the Fujairah trading hub increased by 947,000 barrels to 9.912 million barrels in the week ended Jan. 23, S&P Global Commodity Insights data showed.
Oil slipped on Wednesday, adding to a decline in the previous session, as a rise in US crude inventories and global recession worries edged out optimism for a demand recovery in China.