According to a Reuters report, Asia’s cash premium for 380-centistoke (cst) high-sulphur fuel oil (HSFO) cargoes surged to a fresh record on Friday.
Cash premium surge
The cash premium for cargoes of 380-centistoke (cst) high-sulphur fuel oil (HSFO) in Singapore climbed to a record on Tuesday and to a fresh record on Friday.
- The cash premium for 380-cst HSFO surged to $41.78 per tonne above Singapore quotes on Tuesday, up from the previous high of $41.01 per tonne last Wednesday.
- The cash premium for the mainstay 380-cst HSFO in Singapore rose to $46.22 per tonne above Singapore quotes, up from the previous high of $45.75 per tonne hit on Thursday.
- HSFO cash differentials have strengthened in recent weeks due to scarce regional supplies as shippers are preparing to switch to cleaner marine fuels from 2020.
Starting Jan. 1, 2020, shippers need to comply with new International Maritime Organization (IMO) rules that requires them to use bunker fuel with a sulphur limit of 0.5%, down from 3.5% currently.
HSFO cash differentials have soared in recent weeks due to tight regional supplies ahead of a switch to cleaner marine fuels from next year.
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Source: Reuters
