VLSFO (very low sulfur fuel oil) spot premiums continued to dip to below $4 per Mt. Backwardation for VLSFO continued to narrow. Refinery margins for VLSFO softened. Following the weakness in low sulphur markets, the Hi-5 spread for December narrowed to $102 per Mt on Tuesday.
HSFO (High Sulphur Fuel oil) markets largely stable to mildly weaker with ample supplies are expected into December.
Turning to other markets, Crude prices remain flat today. Benchmark futures added to Monday’s session loss due to reducing political risk premium. FO prices in India may go down while LDO prices will witness little change as on 1st Dec, 2024.
