Spot benchmarks for fuel oil were steady amid thin trading on Monday, with bids and offers fluctuating in a tight range.

Singapore’s cash differential for very low sulphur fuel oil (VLSFO) was pegged at $1.80 a metric ton, capped by largely tepid demand.

Downstream bunker premiums have been holding in low-teens in the past weeks, according to market sources.

Meanwhile, cash differential for 380-cst high sulphur fuel oil (HSFO) held at a stable discount near 40 cents a ton. Fading seasonal demand from the Middle East is likely to limit any upside to prices.

Margins were also rangebound from last week. VLSFO crack closed at a premium near $9 a barrel, while HSFO crack was at a discount of about $5.70 a barrel, based on data compiled by LSEG.

In regional supplies, Vietnam’s Nghi Son offered 5,000 tons of fuel oil for loading in September, based on a notice on its website. The tender closes on Tuesday.
Source: Reuters