Spot premium for 380-cst high sulphur fuel oil (HSFO) recovered for a second consecutive day on Thursday, after hitting more than a five-month low recently.

The 380-cst premium was pegged slightly above $6 a metric ton, while that for very low sulphur fuel oil (VLSFO) was little changed at about $8 amid rangebound trades.

Inventories of fuel oil rebounded in Singapore but the weekly levels continued to average lower month-on-month, official data showed.

Supply remained tight for prompt loading dates, which kept cargo premiums supported.

Meanwhile, cracks for 380-cst HSFO closed at discounts of about $8 a barrel, while VLSFO cracks closed at premiums of $13.65 a barrel.

INVENTORY DATA

– Singapore onshore fuel oil stockpiles were at 17.59 million barrels (about 2.77 million metric tons) in the week to Oct. 9, climbing to a three-week high, Enterprise Singapore data showed.

OTHER NEWS

– Oil prices edged higher on Thursday, underpinned by a spike in fuel demand as a major storm barrelled into Florida, with Middle East supply risks also in focus.

– A Liberia-flagged tanker was struck by an unidentified projectile in the Red Sea causing minor damage, but no casualties, British maritime security agencies said on Thursday.

– Global marine fuel supplier Peninsula is expanding its presence in Middle East markets for conventional bunker fuels, while ramping up the supply of alternative fuels in other regions, a senior executive said.

– Hurricane Milton made landfall on Florida’s west coast on Wednesday, whipping up deadly tornadoes, destroying homes and provoking flash floods and power outages as it began its eastward march across the state.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Mrigank Dhaniwala)