off-the-wire

Asia Fuel Oil-0.5% VLSFO premium spikes to six-month high

Kitco Media
By Reuters
Published:
Updated:
Reuters
SINGAPORE, Feb 1 (Reuters) - The spot cash premium for 0.5% very low sulphur fuel oil (VLSFO) surged to a six-month high on Wednesday as the product traded at a higher value for end February to early March loading. Arbitrage supplies could dip into the later half of February as the West appears to be shorter on low-sulphur vacuum gasoil supplies, which could lead to an overall tighter blendstocks pool for Asia, trade sources said.


The 0.5% VLSFO cash differential rose to a premium of $28.40 a tonne on Wednesday, while the market's front-month crack climbed to $14.16 a barrel at the Asia close (0830 GMT).


However, downstream bunker fuel premiums were lagging in recovery as overall prompt supplies remained ample. Premiums for delivered 0.5% VLSFO bunker fuel were in the range of $30-35 earlier this week, according to traders.


FUJAIRAH INVENTORIES Residual fuel oil stocks at Fujairah dipped 2% to 9.71 million barrels (1.53 million tonnes) in the week ended Jan. 30, showed data from the Fujairah Oil Industry Zone published by industry information service S&P Global Commodity Insights OTHER NEWS


- Oil prices rose on Wednesday as signs of slowing inflation in the United States eased fears that the world's largest oil consumer may face a recession.


- South Korea's S-Oil plans to shut its No. 3 crude distillation unit (CDU), condensate fractionation unit (CFU) and hydrocracker for maintenance in May, a company spokesperson said on Wednesday. - Kuwait's National Petroleum Company exported its first shipment of modified diesel fuel to Europe through the Mina al-ahmadi refinery, the oil ministry said on Wednesday.


- Exxon Mobil Corp posted a $56 billion net profit for 2022, the company said, taking home about $6.3 million per hour last year, and setting not only a company record but a historic high for the Western oil industry. WINDOW TRADES - 180-cst HSFO: One trade - 380-cst HSFO: No trade - 0.5% VLSFO: Three trades


ASSESSMENTS
FUEL OIL
CASH ($/T) ASIA CLOSE CHANGE PREV CLOSE RIC Cargo - 0.5% VLSFO 660.56 30.38 630.18 Diff - 0.5% VLSFO 28.40 5.65 22.75 Cargo - 180cst 397.49 4.37 393.12 Diff - 180cst -2.56 -1.39 -1.17 Cargo - 380cst 388.95 8.60 380.35 Diff - 380cst 1.02 0.27 0.75 Bunker (Ex-wharf) Premium - 380cst 9.50 -1.00 10.50
Bunker (Ex-wharf) Premium - 0.5% VLSFO 29.00 2.50 26.50
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)

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