VLSFO (Very Low Sulphur Fuel Oil) cash premium in Asia eased on Monday despite of widening backwardation. 0.5% VLSFO cash premium edged lower at $28.75 Mt breaking the upside momentum for last six consecutive sessions. Refining margins edged higher to a premium of $10.86 a barrel with a strong backwardation curve up. HSFO (High Sulphur Fuel oil) continued to sagged up. The cash differentials climbed with a steady refining margins.
Crude markets are walking a tight rope flirting between demand fears and widening conflict in middle east. Investors dump major petroleum futures and options due to gloomy economic outlook. Furnace oil and LDO prices are set to change on 16th November, 2023 in India.