0.5% VLSFO rally cools on flurry of offers
Asia’s spot premium for 0.5% very low sulphur fuel oil (VLSFO) eased on Friday amid a flurry of spot offers, snapping a rally that struck six-month highs.
The spot premium (MFO05-SIN-DIF) slid to $25.14 a tonne to Singapore quotes on Friday, while the February refining crack (LFO05SGDUBCMc1) was at a premium of $12.04 a barrel to Dubai at the Asia close (0830 GMT), logging weekly declines of more than 15%.
As of Friday, more than 2.5 million tonnes of Western arbitrage supplies are slated to arrive in Asia for February, ship-tracking data from Refinitiv showed.
This was relatively steady compared with January volumes as Russian supplies continued to flow eastward amid Western sanctions.
ARA INVENTORIES (STK-FO-ARA)
Fuel oil inventories in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub dipped 1% to 1.11 million tonnes in the week ended Feb. 2, latest data from Dutch consultancy Insights Global showed.
– 180-cst HSFO: No trade
– 380-cst HSFO: Three trades
– 0.5% VLSFO: One trade