Fuel oil cargo premium softened on ample supplies reported in Asia market. VLSFO cargo premium eased despite of higher demand backed by red-sea tensions. Fuel oil cargo vessels are rerouting to avoid red sea water that escalated freight charges and delaying to reach destinations. Higher freight charges inturn inflating product cost that keep weigh on product economics.
Fuel oil – singapore’s 0.5 % VLSFO cash premiums dipped to $8.55/mt on Tuesday. Refining cracks premium held at $16 a barrel for Feb. On the other hand, HSFO prices remained range bound. 380 cSt HSFO premium pegged at $2.75/mt. Cracks held at a discount of $12 per Mt.
Furnace oil prices in India set to revise for every fortnight. FO prices are expected to increase on 1st feb, 2024. crude index curves sloped towards up backed by supply concerns and growth forecast numbers offset bearish sentiment in the market.