Fuel oil spot markets rebounded at Singapore trading hub in Asia. Fuel oil grades spot premiums also uplifted but capped upside momentum on plentiful supplies. The over all fuel oil supplies to Singapore are expected at 7 Million tonnes for Dec as per data. November cargo arrivals also spilled over into current month and remained higher in the fourth quarter.
VLSFO (very low sulfur fuel oil) spot prices strengthend.for jan loading. Backwardation for Jan-Feb contract widened on emerging spot demand. HSFO (High Sulphur Fuel oil) 380 cSt cracks closed at a discounts of about $5 per barrel.
Hi-5 Fuel oil spread is the premium of VLSFO over 380 cSt HSFO. Hi-five spread widened slightly day on day, Remained narrow below $100 per ton.
Turning to other markets, Crude oil took a turn on traders optimism over demand outlook. FO prices in India went down while LDO prices revised down as on 16th Dec, 2024.
