Asian high-sulphur fuel oil cash premiums hit record highs
Asian cash premiums for cargoes of high-sulphur fuel oil (HSFO) surged to record highs, boosted by intense buying interest amid shrinking supplies.
Fuel oil premiums in Asia have hit new record highs in recent weeks in one of the first signs of the impact of a shift in global ship fuel rules set to occur in 2020.
Singapore fuel oil inventories fell for a fourth straight week to a five-month low amid stubbornly low arbitrage inflows into the storage and trading hub in the week ended July 10, official data released on Thursday showed.
Cash premiums for 380-cst HSFO jumped to $24.31 per tonne to Singapore quotes on Thursday, up from $16.80 a tonne in the previous session.
The bullish market fundamentals also lifted cash premiums of the lower viscosity 180-cst HSFO to record $22.22 per tonne above Singapore quotes, up from $12.88 per tonne on Wednesday.
Source: Reuters (Reporting by Roslan Khasawneh; Editing by Alexander Smith)