Spot differentials for very low sulphur fuel oil (VLSFO) edged higher to a wider premium, compared with the previous day, while discounts for high sulphur fuel oil (HSFO) were broadly stable.

The VLSFO market saw some gains on firmer demand prospects in January from the bunkers sector, with market structure flipping from contango to a mild backwardation.

Premiums for delivered VLSFO bunkers have also inched slightly up recently, some trade sources said.

Meanwhile, HSFO held in discounts as prompt inventories remained ample, with buy-sell indications rangebound in recent trading sessions.

Cracks for both grades were steady to softer on Tuesday.

February 380-cst HSFO/Brent crack (FO380BRTCKMc1) slipped to a discount of $8.90 a barrel at the Asia close, based on LSEG data, while VLSFO crack (LFO05SGBRTCMc1) closed at a premium of $3.15 a barrel.

BUNKER DATA

Marine fuel sales scaled new highs in Singapore during 2025, the Maritime and Port Authority of Singapore (MPA) said on Tuesday, supported by resilient global trade and fuel offtake.

Singapore’s bunker sales totalled 56.77 million metric tons in 2025, according to the MPA, surpassing a previous record of 54.92 million tons in 2024.

OTHER NEWS

– Oil prices extended gains on Tuesday as heightened concerns surrounding Iran and potential supply disruptions outweighed the prospect of increased crude supply from Venezuela.
– Vitol and Trafigura have started discussions on Venezuelan crude oil sales with refiners in India and China for cargoes to be delivered in March, several trade sources said.
– Exxon Mobil remains interested in visiting Venezuela and is prepared to send an assessment team there, a source familiar with its strategy told Reuters, a day after U.S. President Donald Trump said he might keep the company out of the country.
– The launch of Indonesia’s B50 biodiesel mandate will depend on the price gap between crude oil and crude palm oil, a senior official said on Tuesday.

WINDOW TRADES

– 180-cst HSFO: No trade
– 380-cst HSFO: One trade
– 0.5% VLSFO: One trade
Source: Reuters