Fuel oil prices in Asia continued to soften further on Tuesday at SG-trading window in Asia. Expected heavy inflow into December and some of the Nov cargo arrivals spilled into Dec weighed on.

VLSFO (very low sulfur fuel oil) cash premiums remained pegged below $3 per tonne. Backwardation widened slightly on Tuesday after multiple sessions of narrowing. HSFO (High Sulphur Fuel oil) 380 cSt markets continued low momentum followed by weakening refining margins for 380 cSt. HSFO dipped towards a discount of $4.5 a barrel as per data.

Hi-5 Fuel oil spread is the premium of VLSFO over 380 cSt HSFO. Hi-5 Fuel oil spread in Asia recovered on Tuesday amid VLSFO recovery and softening HSFO. Balance month Dec Hi-5 spread closed at about $95 per Mt while Jan closed at about $99 a ton.

Turning to other markets, Crude futures prices ripped higher on Tuesday. 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.