SINGAPORE: Asia’s 0.5% very low-sulphur fuel oil (VLSFO) market extended losses on Tuesday but sentiment remained supportive amid expectations of persistently tight supplies over the near term, trade sources said.
VLSFO cash premiums slipped to a one-week low of $12.40 a tonne to Singapore quotes, while front-month time spread and crack against Dubai crude both fell to two-week lows of $12.75 a tonne and $15.42 a barrel, respectively, on Tuesday.
Oil prices bounced back on Tuesday, recovering some of the previous day’s losses, as growing tension in Eastern Europe and the Middle East fuelled concerns over possible supply disruptions in an already tight market.
Two 180-cst high-sulphur fuel oil (HSFO) cargo trades were reported in the window totalling 40,000 tonnes. No VLSFO cargo trades were reported in the Singapore trading window.
Taiwan’s Formosa offered a rare 180-cst HSFO cargo with a maximum 3.4% sulphur content loading over Feb. 11-13 from Mailiao.
The rare offer comes after Formosa said it shut its 36,000 barrel-per-day hydrocracker at its Mailiao refinery following a fire last week, the company spokesman said on Tuesday.
India’s HPCL offered 25,000 tonnes vacuum gasoil with a maximum 2% sulphur content loading from Vizag over Feb 8-10 in a tender closing on Jan. 25.
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