SINGAPORE: The recent rally in Asia’s very-low sulphur fuel oil (VLSFO) paused on Tuesday after more spot offers emerged, though premiums remained strong.
Trading house Gunvor continued buying the product at firm premiums for July loading, while several offers emerged from other trading houses on the Platts window.
The cash premium for 0.5% VLSFO was pegged at $19.72 a metric ton over Singapore quotes on Tuesday, after spiking sharply in the previous day.
Meanwhile, front-month refining margin closed relatively steady at a premium of $13.91 a barrel at the Asia close (0830 GMT).
The market structure continued to widen, with front-month July/August backwardation timespread firming to $19.45 a ton at the Asia close.
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