Money News

Singapore high-sulphur fuel oil cash premium rises to record high

(Reuters) - Asia’s cash premium for cargoes of mainstay 380-centistoke (cst) high-sulphur fuel oil (HSFO) rose to a fresh record on Thursday, according to Reuters data.

The cash premium for 380-cst HSFO in Singapore climbed to $45.75 per tonne above Singapore quotes, up from the previous high of $41.78 per tonne hit on Tuesday.

HSFO cash differentials have got a boost in recent weeks from tight regional supplies ahead of a switch to cleaner marine fuels from next year.

Starting Jan. 1, 2020, shippers need to comply with new International Maritime Organization (IMO) rules that require them to use bunker fuel with a sulphur limit of 0.5%, down from 3.5% currently.

Reporting by Koustav Samanta; Editing by Mark Potter