Asia’s spot premium for very low sulphur fuel oil (VLSFO) dipped for a third straight session on Monday amid selling interest, while the spot market for high sulphur fuel oil (HSFO) was little changed in thin trade.

Expectations of consistent low-sulphur supply arrivals in Asia have weighed on spot premiums and refining margins.

The 0.5% VLSFO cash premium (MFO05-SIN-DIF) fell to $6.97 a tonne to Singapore quotes on Monday, while the front-month refining crack eased to $8.50 a barrel at the Asia close (0830 GMT).

The HSFO market was also under pressure on steady Russian inflows. Reflecting near-term bearishness, front-month time spreads for both 180-cst and 380-cst HSFOs were in contango.
Source: Reuters