Fuel oil prices in Asia under pressure. Spot premiums for Asia’s fuel oil grades softened amid thin trade. Fuel oil supplies to Asia is expected to be heavy into this month, that keep weigh on spot prices.
VLSFO (very low sulfur fuel oil) cash premiums pegged below $3 per tonne. Backwardation weakened further at the prompt months. HSFO (High Sulphur Fuel oil) 380 cSt cash premiums pegged lower at $11.15 a ton on Monday. HSFO markets showed signs of ease after holding rangebound during early sessions.
Hi-5 Fuel oil spread is the premium of VLSFO over 380 cSt HSFO. Hi-5 Fuel oil spread in Asia steadied on Monday after softening to its narrowed premium in more than five months. The Hi-5 spread closed at $87.45 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 prices flat. Fragility in ceasefire agreement and OPEC meet in spot light. FO prices in India went down while LDO prices revised down as on 1st Dec, 2024.
