The front-month crack for 0.5% VLSFO was at a premium of $16.28 a barrel to Dubai quotes at Tuesday's Asia close (0830 GMT), slipping more than 6% from last month.
Fuel oil supplies to East Asia totalled about 5 million tonnes in January, steady to higher from December, Refinitiv ship-tracking data showed, with close to 3 million tonnes already expected to load for February as of Tuesday.
Steady tenders from Kuwait's Al Zour have also weighed on market sentiment in Asia, trade sources said.
Meanwhile, high sulphur fuel oil (HSFO) cracks also recorded monthly declines. The front-month 180-cst HSFO crack fell to a discount of 18.46 a barrel on Tuesday.
OTHER NEWS
- Oil prices fell as the prospect of further interest rate increases and ample Russian crude flows outweighed demand recovery expectations from China.
- Indonesian state energy company Pertamina is looking into developing a fuel product by mixing gasoline, methanol and ethanol, its chief executive officer Nicke Widyawati said in a parliamentary hearing. - Pakistan could face a crunch in fuel supplies in February as banks have stopped financing and facilitating payments for imports due to depleting foreign exchange reserves, traders and industry sources said.
- Reliance Industries has stopped selling petroleum coke within India and boosted imports of
the product to turn it into synthetic gas to power its refineries, according to two sources
familiar with the matter and trade data.
WINDOW TRADES - 180-cst HSFO: No trade
- 380-cst HSFO: No trade
- 0.5% VLSFO: No trade
ASSESSMENTS
FUEL OIL
CASH ($/T) ASIA CLOSE CHANGE PREV CLOSE RIC
Cargo - 0.5% VLSFO 630.18 -18.36 648.54 Diff - 0.5% VLSFO 22.75 -1.00 23.75 Cargo - 180cst 393.12 -9.97 403.09 Diff - 180cst -1.17 -0.25 -0.92 Cargo - 380cst 380.35 -9.09 389.44 Diff - 380cst 0.75 -1.00 1.75 Bunker (Ex-wharf) Premium - 380cst 10.50 -1.50 12.00
Bunker (Ex-wharf) Premium - 0.5% VLSFO 26.60 -0.90 27.50
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 Rashmi Aich)
