Asia’s very low sulphur fuel oil (VLSFO) benchmarks were rangebound on Monday amid the absence of fresh drivers, though more spot trades emerged amid a narrower buy-sell gap.

The VLSFO cash premium was pegged within the range of $5.50 to $6 a metric ton, while the product crack spread LFO05SGDUBCMc1 held between premiums of $11 and $11.50 a barrel, largely unchanged from last week.

The market held largely stable in recent trading sessions, with recovery capped by lukewarm bunker demand, according to market sources.

Meanwhile, expectations of strong seasonal demand kept the high sulphur fuel oil (HSFO) market buoyed.

Cash premium for 380-cst HSFO was pegged higher at a premium of about $8 a ton, though crack spread FO380DUBCKMc1 inched lower to discounts nearer to $7 a barrel.

OTHER NEWS

– Oil dipped in early Asia trade on Monday amid signs of weak fuel demand and as comments from U.S. Federal Reserve officials dampened hopes of interest rate cuts.

– Chinese companies won five more bids to explore Iraqi oil and gas fields, Iraq’s oil minister said on Sunday, as the Middle Eastern country’s hydrocarbon exploration licensing round continued into its second day.

– Operations at nine Libyan oilwells were restored after undergoing the necessary maintenance, Libya’s National Company Corporation said in a statement on Sunday.

– U.S. President Joe Biden is set to announce new China tariffs as soon as next week targeting strategic sectors, including a major hike in levies on electric vehicles, according to three people familiar with the matter.

WINDOW TRADES O/AS

– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: Four trades

Source: Reuters reported by Jeslyn Lerh and edited by Shweta Agarwal