SINGAPORE: Asia’s fuel oil cash premiums retreated on Tuesday as market backwardation eased for both high sulphur fuel oil (HSFO) and very low sulphur fuel oil (VLSFO) amid an ample supply pool.
The 180-cst HSFO cash differential dipped by $1.30 to $3.88 per tonne over Singapore quotes, while the 380-cst HSFO cash differential fell by $1.00 to $15.11 per tonne.
This comes despite active spot trading momentum on Tuesday, with two 180-cst HSFO cargoes and six 380-cst HSFO cargoes exchanging hands.
Meanwhile, the VLSFO market continued to hold steady on thin trade, while its front-month timespread also eased in backwardation.
The cash differential for VLSFO inched 19 cents lower to a premium of $16.39 per tonne over Singapore quotes on Tuesday.
Oil prices fell on Tuesday as bleak economic data from top crude buyer China renewed fears of a global recession.
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