(Reuters) - The cash premium for cargoes of 380-centistoke (cst) high-sulphur fuel oil (HSFO) in Singapore climbed to a record on Tuesday, according to Reuters data.
The cash premium for 380-cst HSFO surged to $41.78 per tonne above Singapore quotes on Tuesday, up from the previous high of $41.01 per tonne hit last Wednesday.
HSFO cash differentials have strengthened in recent weeks due to scarce regional supplies as shippers are preparing to switch to cleaner marine fuels starting next year.
Starting Jan. 1, 2020, shippers need to comply with new International Maritime Organization (IMO) rules that requires them to use bunker fuel with a sulphur limit of 0.5%, down from 3.5% currently.
Reporting by Koustav Samanta; Editing by Louise Heavens