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Asia’s VLSFO Market Softening Amid Supply Length: Reuters

OIL PRODUCTS

Asia’s VLSFO market has softened today amid expectation of supply length in July, according to Reuters.

  • The Singapore VLSFO cash differential went below $4.50/mt, while August cracks were below $10/b July 1, weaker than last week.
  • Lukewarm bunkering demand and robust supply has put some pressure on the market.
  • Sources are keeping an eye on supply coming from Kuwait’s Al-Zour and Nigeria’s Dangote refineries after fires at both facilities. Nonetheless, there is no disruption to supply yet.
  • HSFO prices have been holding stable, while cracks fell to around $6.70/b.

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