VLSFO (very low sulfur fuel oil) refining margins fell below premiums of $11 a barrel on Friday, Closing at more than 3 months low.
HSFO (High Sulphur Fuel oil) 380 cSt cracks closed down at discount of about $3 a barrel. Bunker premiums fell with delivery basis premium softening for both low sulphur and high sulphur marine fuels. Fuel oil markets are underpinned by piling up inventories in Asia.
Hi-5 Fuel oil spread in Asia narrowed by over 20% week on week. The premium of VLSFO over 380 cSt HSFO is known as Hi-5 spread. The Hi-5 spread fell to $87.15 per Mt on Friday. The widening Hi-5 spread reflected weakness of VLSFO markets while HSFO held its ground.
Turning to other markets, Crude futures fizzled on Friday, logged in weekly loss. FO prices in India may go down while LDO prices will witness little change as on 1st Dec, 2024.
