SINGAPORE: The spot premium for 380-cst high sulphur fuel oil (HSFO) rose for a fourth straight session on Wednesday, while the very low sulphur fuel oil (VLSFO) market dipped further from five-week lows.
HSFO premiums have trended higher in recent sessions amid an uptick in spot buying interest, but the market remains amply supplied and this is expected to keep a check on recovery for the coming months.
The 380-cst HSFO cash differential firmed by $1 to a premium of $3.25 per tonne to Singapore quotes on Wednesday, as bids inched higher day-on-day.
In contrast, VLSFO premiums softened in recent sessions on competitive selling interest that met with minimal bids. Downstream bunker fuel premiums also softened this week, market sources said.
The 0.5% VLSFO cash differential fell by $3.02 to a premium of $9.95 per tonne to Singapore quotes on Wednesday, with multiple offers for different loading dates.
Residual fuel oil stocks at Fujairah rose 5% to 12.91 million barrels (2.03 million tonnes) in the week ended Oct. 31, data from the Fujairah Oil Industry Zone showed on Wednesday.
India’s Nayara Energy has offered 42,000 tonnes to 44,000 tonnes of low-sulphur vacuum gasoil (LSVGO) for loading between Dec. 10-14 out of Vadinar.
The tender closes on Wednesday with same-day validity. The excess LSVGO supply emerged as the private refiner had plans to shut its 400,000 barrel-per-day (bpd) Vadinar refinery this month for routine maintenance.
The International Maritime Organisation’s regulations to introduce carbon intensity measures came into force on Nov. 1, it said on its website this week. These amendments require ships to improve their energy efficiency in the short term to reduce greenhouse gas emissions.
Starting Jan. 1, 2023, all ships will have to calculate their attained Energy Efficiency Existing Ship Index (EEXI) to measure energy efficiency, the IMO said. It will also be mandatory to start data collection for the reporting of their annual operational carbon intensity indicator (CII) and CII rating.
The first annual reporting will be completed in 2023, with initial ratings given in 2024, the IMO added. The measures are part of IMO’s commitment to reduce carbon intensity from all ships by 40% by 2030 compared to 2008.
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