Fuel oil – VLSFO cash premium in Asia fell below three month lows on Monday while HSFO cash premium slipped. VLSFO cash premiums maintained steady decline due to ample supplies into the region with total monthly arrivals likely to breach 6 million mt as per report. Singapore’s cash premium for VLSFO fell to $2.75 a ton on Monday. On the other hand, 380-cSt cash premium for HSFO slipped to $6 per ton with softening of cracks to discounts of nearly $11 a barrel.
crude futures are trading in bearish mood buoyed up by more than expected cuts of OSP by KSA and higher inventories coupled with demand concerns out weighed escalation of middle-east tensions factor. Furnace oil and LDO prices are set revise up on 16th Jan, 2024.