FIS: Fuel Oil Daily Evening Report

Singapore’s MPA has said that it will suspend Glencore’s bunkering license for 2 months from 18^th August after it had supplied contaminated fuel.

The market encountered another front-month Singapore VLSFO crack collapse today. The contract opened in a $8.6-9/bbl bid to offer spread, before trading down to $6.85/bbl 08.30 GMT. The crack did recover, being pegged at $8.65/bbl at 15.50 GMT.

Rotterdam’s equivalent crack was trading at $5.45/bbl 15.50 GMT.

There was low liquidity in both the high and low sulphur Rotterdam spreads today. Its front-month to second-month VLSFO barge spread traded at $7/mt at 15.50 GMT, which was $0.25/mt below its previous settlement.