Asia’s spot market for very low sulphur fuel oil (VLSFO) dipped on Tuesday after a flurry of spot trades emerged.

Trafigura bought six VLSFO cargoes on the spot market window on Tuesday, based on industry sources.

Singapore’s VLSFO cash premium pegged at $3.65 a metric ton, easing from the previous day, though front-month cracks for VLSFO inched higher to premiums of about $9.50 a barrel after crude prices slumped in Asia trade.

Meanwhile, the 380-cst high sulphur fuel oil (HSFO) market retained its strength, with cash premiums rallying higher as firmer bids continued to emerge.

Cracks for 380-cst HSFOwere pegged at a discount of about $4 a barrel, holding broadly steady from last week. The market has extended gains on expectations of tight supply into the first half of June, industry sources said.

OTHER NEWS

– Oil prices on Tuesday extended losses from a four-month low in the previous session, as investors worried about supply ticking up amid signs of weakening U.S. demand.

– The U.S. is buying another 3 million barrels of oil for the country’s Strategic Petroleum Reserve, the Department of Energy said on Monday, as it slowly replenishes the stockpile after the largest sale ever in 2022.

– Maersk faces significant terminal congestion in Mediterranean and Asian ports, causing substantial delays in its vessel schedule, the Danish shipping group said in a statement.

– French energy major TotalEnergies announced on Tuesday agreements with Indian Oil Corporation and Korea South-East Power for the supply of liquefied natural gas over a medium to long term period.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Sonia Cheema)