Asia’s hi-5 fuel oil spread narrowed to a softer premium on Monday, as the very low-sulphur fuel oil (VLSFO) market weakened while high sulphur fuel oil (HSFO) recovered.

The hi-5, which reflects VLSFO’s premium over the price of 380-cst HSFO, slipped for a fourth consecutive trading day to about $76.50 a metric ton, based on prompt-month data compiled by LSEG at the Asia close.

Singapore’s spot differential for VLSFO fell on Monday, weighed down by a decline in offers for prompt loading dates. The broader market was still adequately supplied, trade sources said.

Thailand’s PTT offered low-sulphur fuel oil for loading between December 23 and 25, in a tender that closed on Monday, according to sources.

Meanwhile, spot bids for 380-cst HSFO edged higher, though the market remained trapped in discounts.

Cracks traded lower compared to the previous session. The December VLSFO crack (LFO05SGBRTCMc1) fell to a premium of around $5 a barrel, while 380-cst HSFO crack (FO380BRTCKMc1) closed at a discount of nearly $7 a barrel.

PORT UPDATES

– Licences to supply methanol as a marine fuel in Singapore will be issued from January 1, 2026, the Maritime and Port Authority of Singapore (MPA) said in a statement on Monday.

OTHER NEWS

– Oil prices took a breather on Monday after last week’s fall, as investors weighed the chances for a U.S. rate cut against the prospect of a Russia-Ukraine deal that could free up more Russian supply through an easing of sanctions.

– China is importing unusually large quantities of crude oil from Indonesia, a trend traders say is a way to mask shipments of sanctioned Iranian crude trans-shipped in waters off Malaysia amid greater scrutiny of cargoes originating from Malaysia.

– Ukraine struck a heat and power station in the Moscow region on Sunday with drones, triggering a major fire and cutting off heating for thousands in one of Kyiv’s biggest attacks to date on a power station deep inside Russia.

– The outcome of Brazil’s COP30 climate summit was left hanging in the balance, with the European Union refusing to accept a draft deal it said would fail to advance global efforts to curb greenhouse gas emissions driving climate change.
Source: Reuters