HSFO demand surged in June as Middle Eastern countries increased purchases for power plants.

In July and August, an estimated 80 LNG cargo cancellation are likely to keep pressure on the market.

The company last sold 35,000 mt of IMO-compliant fuel oil with 100-380 CST for June 23-July 1 loading from its Map Ta Phut refinery, at a discount of around $40/mt to MOPS 10 ppm gasoil assessments.

The delivered Singapore Marine Fuel 0.5%S bunker premium against the Singapore Marine Fuel 0.5%S cargo values shrank to a near one-month low on July 3, S&P Global Platts data showed, on the back of strong cargo values and weak bunker demand.

An emergence of strong demand, especially during the Platts Market on Close assessment process, helped strengthen the Asian low sulfur marine fuel market.

Fuel oil imports into the UAE's east coast port of Fujairah declined to an 18-month low in June as storage space was running low with stockpiles at a record high, according to cargo-tracking data from Kpler.

Market conditions for 0.5%S marine fuel continue to be defined by ample product combined with capped demand in the bunkers sector, while talk of a second wave of the coronavirus pandemic was putting pressure on forward-looking outlooks.