The cash premium for very low sulphur fuel oil (VLSFO) in Asia dropped to nearly six-month lows, reaching $1.50 a metric ton in Singapore on Wednesday. Supply pressure, coupled with subdued downstream bunker demand, contributed to the decline. Steady volumes of blend components in the East of Suez region and the potential increase in Kuwaiti Al Zour supply have added to the oversupply conditions. Recent bullish bids for high sulphur fuel oil (HSFO) also retreated, with cash premiums for the 380-cst grade FO380-SIN-DIF at $5.75 a ton. Meanwhile, Fujairah fuel oil inventories fell 13.5% to 8.61 million barrels in the week ending January 8.

SOURCE:HELLENIC SHIPPING NEWS