SINGAPORE: Asia’s 0.5% very low-sulphur fuel oil (VLSFO) prices firmed on Wednesday on signs of rising north Asian utility demand for low-sulphur residual fuels in the coming winter months amid high natural gas prices.
The front-month VLSFO crack firmed to $13.39 a barrel above Dubai crude, Refinitiv data showed, as crude prices fell.
The strengthening VLSFO market, coupled with a weakening HSFO market as a result of receding demand for high-sulphur fuels from power generators, helped widen the front-month high-low (HiLo) sulphur price spread, the difference between front-month 0.5% very low-sulphur fuel oil (VLSFO) and 380-cst high-sulphur fuel oil (HSFO) swaps.
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