Spot premium for very low sulphur fuel oil (VLSFO) extended a climb for a second session on Wednesday, though expectations of more incoming supplies capped gains.

The premium rose to $8.05 a metric ton after stronger bids and trades emerged for spot parcels.

Some prompt supply tightness is expected to linger into the first half of this month, but incoming supplies are underway into the second half, market sources said.

Meanwhile, high sulphur fuel oil (HSFO) benchmarks also firmed slightly on Wednesday, with backwardation widening for both 180-cst and 380-cst grades. The 380 cst cash premium closed higher at $5.05 a ton on Tuesday, having shown signs of paring in recent sessions.

INVENTORY DATA

– Fujairah heavy fuel inventories fell 4.1% to 7.19 million barrels (1.13 million tons) in the week to Oct. 7, FOIZ data published by S&P Global Commodity Insights showed.

OTHER NEWS

– Oil prices edged up on Wednesday as developments in the Middle East took centre stage against cautious demand expectations and ahead of a government meeting on China’s fiscal policy.

– Marine fuel suppliers at Singapore will be required to provide digital bunkering services and issue electronic bunker delivery notes starting April 1, 2025, Amy Khor, Singapore’s senior minister of state for transport, said at the SIBCON 2024 conference.

– Singapore’s largest bunker supplier Equatorial Marine Fuel is expanding its tanker fleet, a company executive told Reuters this week, adding it will receive its first IMO type 2 chemical bunker tanker before the end of 2024 and three more in 2025.

– Implementation of higher biodiesel mandates in Indonesia, the world’s biggest palm oil producer, is likely to tighten supplies of the vegetable oil, a leading industry analyst said on Tuesday.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Mrigank Dhaniwala)