Asia’s cash premium for very-low sulphur fuel oil (VLSFO) eased further on Monday as offers dipped from the previous week, with its recent rally losing steam in line with market expectations, says an article published on XM.
Ample imports capped
The 0.5% VLSFO cash premium MFO05-SIN-DIF dipped to $14.75 a metric ton over cargo quotes, while its refining crack LFO05SGDUBCMc1 closed lower at a premium of $13.22 a barrel at the Asia close (0830 GMT).
The market had rallied higher earlier in the month on strong bidding, but expectations of ample imports capped further strength.
HSFO cash premium
Meanwhile, the spot high sulphur fuel oil (HSFO) market started the week on a stable note in Asia.
The 380-cst HSFO cash premium FO380-SIN-DIF gained slightly at $2.95 a metricton on Monday, though its crack spread FO380DUBCKMc1 eased to a discount of $6.90 a barrel, after hitting more than one-year highs last week.
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Source: XM
