Asia’s very low sulphur fuel oil (VLSFO) market retained strength for September loading dates on Monday, although it traded lower for October.

Sentiment around tight prompt supplies had kept the spot VLSFO market supported in recent sessions.

The product traded at $23 per metric ton to Singapore quotes for dates in late September, though a lower-priced trade emerged for early October at a $16 premium.

Backwardation for VLSFO eased for a second consecutive trading day, with the balance-September and October timespread narrowing to $26 per ton.

Meanwhile, high sulphur fuel oil (HSFO) remains strong for now, with spot premium for the 380-cst grade pegged above $14 per ton on Monday.

OTHER NEWS

– Oil futures rose on Monday as a potential hurricane approached the U.S. Gulf Coast, following on from a week of heavy losses due to mounting demand concerns.
– Global commodity traders Gunvor and Trafigura anticipate oil prices may range between $60 and $70 per barrel due to sluggish demand from China and persistent global oversupply, executives told a conference on Monday.

– China’s shift towards lower-carbon fuels and a sluggish economy are dampening oil demand growth in the world’s largest crude importer, speakers at the APPEC conference said on Monday.

– Fuel oil exports bound for the U.S. Gulf Coast slumped to their lowest since January 2019 last month, a sign of weakened refinery demand as margins have softened, analysts said.

WINDOW TRADES

– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: Two trades
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Sonia Cheema)