SINGAPORE: The spot cash premium for very low sulphur fuel oil (VLSFO) in Asia climbed for a seventh consecutive session on Wednesday, while Kuwait’s Al Zour awarded its latest tenders for April.
The refiner sold a 120,000-tonne cargo for April 3-4 loading at a discount of $15 to $17 a tonne to Singapore quotes, and another 120,000-tonne cargo for April 7-8 loading at a discount of $10 to $11 a tonne, according to trade sources.
Both cargoes could have been sold to a Western oil major, though this could not be confirmed.
Reflecting steady buying interest, Singapore’s spot 0.5% VLSFO cash premium rose to $11 a tonne, while two spot trades emerged on Wednesday.
Elsewhere, Taiwan’s CPC was also seeking low-sulphur fuel oil for May delivery. The tender closes on March 23 and remains valid until March 25.
Meanwhile, the 380-cst high sulphur fuel oil premium also firmed in recent trading sessions, even as high-sulphur Russian fuel oil barrels continued to flood the East of Suez region.
“Fundamentally, the high-sulphur market remains firm with tight spot volumes despite the heavy Russian arrivals, as much of the arrivals to Asia are not slated to feed into the marine fuels market but to satiate the Chinese feedstock market,” said Emril Jamil, Refinitiv’s senior analyst for crude and fuel oil.
“We believe the emerging trend to China will persist, given the deeply discounted economics of the trade,” he added.
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