Singapore’s cash premium for very low sulphur fuel oil (VLSFO) softened on Monday after rallying to an eight-month high last week, with spot offers easing for September loading dates.

The premium was pegged lower at $11.75 per metric ton, though market backwardation continued to widen from the previous session.

Singapore’s Sept/Oct VLSFO timespread widened to nearly $16.50 per ton, versus $15.80 last Friday, data from market sources showed.

The low-sulphur market has rallied in the past week, though some sources said it was unlikely to sustain in the long term.

Meanwhile, benchmarks in the high-sulphur market held largely stable in recent sessions.

In tenders, India’s IOC offered 25,000 tons of HSFO for loading from Chennai on Sept. 13 and 14, based on shipping records and market sources.

AMMONIA BUNKERING

– Japan’s NYK has deployed the world’s first ammonia-fueled tugboat for commercial use in Tokyo Bay, the company said late last week.

– Finland’s Wartsila has signed a contract with Norwegian shipowner Eidesvik to make one of its platform supply vessels (PSV) capable of running on ammonia fuel from 2026, the company said on Monday.

OTHER NEWS

– Oil prices extended gains on Monday on fears a major spillover in fighting from the Gaza conflict into the Middle East could disrupt regional oil supplies, while approaching U.S. interest rate cuts lifted the global economic and fuel demand outlook. O/R

– Russia has increased fuel oil exports in August so far after completing maintenance at some oil refineries, the Kommersant daily reported on Monday citing information from data and analytics group Kpler.

– Equinor plans to invest 60 billion to 70 billion crowns ($5.7 billion-$6.7 billion) per year offshore Norway towards 2035 as it expects continuing strong demand for oil, it said on Monday.

– Indonesia president-elect Prabowo Subianto hopes to implement mandatory 50% palm oil-based biodiesel blending by early next year, which he said would cut fuel imports by $20 billion per year.

WINDOW TRADES O/AS

– 180-cst HSFO: No trade

– 380-cst HSFO: No trade

– 0.5% VLSFO: No trade

ASSESSMENTS

Source: Reuters reported by Jeslyn Lerh and edited by Krishna Chandra Eluri