Asia’s spot premium for high sulphur fuel oil (HSFO) edged higher on Monday after softening last week, though trade sources said that cargo loadings continued to take place at key Middle Eastern ports even as sentiment remained cautious.

Singapore 380-cst cash premiums were pegged higher at about $4 a metric ton on Monday, with stronger trades emerging.

Trade sources said there was no major disruption to HSFO loadings, though voyages would likely command higher freight rates and higher war risk premiums.

Margins for 380-cst HSFO closed in discounts from crude quotes, based on data from LSEG.

Meanwhile, cracks for very low sulphur fuel oil (VLSFO) held stable at premiums above $10 a barrel.

OTHER NEWS

– Oil prices jumped on Monday to their highest since January as the United States’ weekend move to join Israel in attacking Iran’s nuclear facilities stoked supply concerns.

– Japan’s Nippon Yusen and Mitsui O.S.K. Lines said on Monday they have instructed their vessels to minimise the time spent in the Gulf as they continue to transit the Strait of Hormuz following U.S. strikes on Iranian nuclear facilities.

– German shipping company Hapag-Lloyd on Sunday said its vessels were continuing to sail through the Strait of Hormuz following U.S. strikes on Iranian nuclear facilities, but it added the situation could be reviewed at any moment.

– Maersk vessels continue to sail through the Strait of Hormuz but the company was ready to re-evaluate this based on available information, the group said in a statement on Sunday, following U.S. strikes on Iranian nuclear facilities.

WINDOW TRADES

– 180-cst HSFO: No trade

– 380-cst HSFO: Two trades

– 0.5% VLSFO: No trade
Source: Reuters