VLSFO Spot Premium Surges To Five-month High

Credits: Zbynek Burival/Unsplash

Asia’s spot premium for 0.5% very low sulfur fuel oil (VLSFO) hit a five-month high on Friday on firmer bidding and trading.

Lagging Behind

Downstream VLSFO bunker fuel premiums have also edged higher this week, though the uptick still lagged behind the sudden surge in cargo premiums, traders said. Meanwhile, the 380-cst high sulfur fuel oil (HSFO) market also extended gains on Friday, with the spot premium climbing to $5.05 a tonne to Singapore quotes.

Chinese Export

China’s exports of low-sulfur marine fuels in 2022 fell 6.2% to 18.05 million tonnes year-on-year, in line with lower ship refueling demand across main global bunkering ports. December VLSFO exports were at 1.1 million tonnes, down 12.9% from a year-ago period. Meanwhile, total fuel oil imports in December surged to 1.8 million tonnes. 

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Source: Brecoder