The cash differential for 0.5% very low sulphur fuel oil (VLSFO) slipped to $23.75 a tonne, with spot offers trending lower from the previous week.
Earlier talk of potential supply tightness in February have retreated. Kuwait's Al Zour has offered 120,000 tonnes of fuel oil for loading between Feb. 17 and 18. The tender closes on Jan. 31, sources said. Meanwhile, the 380-cst high sulphur fuel oil (HSFO) market also softened, with its cash differential easing to $1.75 a tonne.
Cracks for both VLSFO and HSFO also declined on Monday, despite lower crude oil prices during Asia trading hours.
OTHER NEWS
- Oil prices fell on Monday amid looming interest rate hikes by major central banks and signs of strong Russian exports, which offset rising Middle East tension over a drone attack in Iran and hopes of higher Chinese demand.
- Saudi Arabia may trim prices for crude grades sold to Asia for a fourth consecutive month in March amid low physical oil premiums, as oversupply worries linger despite expectations of demand recovery in China.
- India plans to use an emergency law next month to force power plants that run on imported coal to maximise output, two government sources told Reuters on Monday, in preparation for expected record consumption this summer.
- Venezuela's state oil firm PDVSA is toughening terms for buyers after a month-long halt to
most exports of crude and fuel, demanding prepayment ahead of loadings in either cash, goods or
services, company documents showed.
WINDOW TRADES - 180-cst HSFO: No trade
- 380-cst HSFO: No trade
- 0.5% VLSFO: No trade
ASSESSMENTS
FUEL OIL
CASH ($/T) ASIA CLOSE CHANGE PREV CLOSE RIC
Cargo - 0.5% VLSFO 648.54 -18.97 667.51 Diff - 0.5% VLSFO 23.75 -0.83 24.58 Cargo - 180cst 403.09 -15.16 418.25 Diff - 180cst -0.92 0.00 -0.92 Cargo - 380cst 389.44 -16.78 406.22 Diff - 380cst 1.75 -2.01 3.76 Bunker (Ex-wharf) Premium - 380cst 12.00 -1.00 13.00
Bunker (Ex-wharf) Premium - 0.5% VLSFO 27.50 -0.50 28.00
For a list of derivatives prices, including
margins, please double click the RICs below.
Brent M1 180cst M1 180cst M1/M2 180cst M2 Visco M1 Visco M2 380cst M1 380cst M1/M2 380cst M2 Cracks 180-Dubai M1 Cracks 180-Dubai M2 East-West M1 East-West M2 Barges M1 Barges M1/M2 Barges M2 Crack Barges-Brent M1 Crack Barges-Brent M2 (Reporting by Jeslyn Lerh; Editing by Krishna Chandra Eluri)
