off-the-wire

Asia Fuel Oil-Spot market eases; Russian product price cap kicks in

Kitco Media
By Reuters
Published:
Updated:
Reuters
SINGAPORE, Feb 6 (Reuters) - Asia's spot fuel oil market softened further on Monday, while a price cap on Russian refined oil products kicked in over the weekend. Price caps on Russian products took effect on Feb. 5, with the G7, the European Union and Australia agreeing on price limits of $100 per barrel on diesel and other products that trade at a premium to crude, and $45 per barrel for products that trade at a discount, such as fuel oil. Russian fuel oil has been flooding eastward since the second quarter of 2022, as barrels sought new outlets following western sanctions. The influx of supplies has capped recovery in margins and cash differentials in Asia, especially for the high-sulphur fuel oil (HSFO) grades. The 180-cst HSFO cash differential slumped to eight-month lows on Monday, hitting a discount of $4.89 a tonne to Singapore quotes. The 380-cst HSFO cash differential fell to a premium of 95 cents a tonne, while the 0.5% very low sulphur fuel oil (VLSFO) cash differential was at $22.68 a tonne, retreating after hitting six-month highs at the start of February. OTHER NEWS


- Oil prices inched up on Monday as concerns that slower growth in major economies may limit fuel consumption outweighed signs of a demand recovery in China, the world's top oil importer.


- Price caps on Russian oil likely hit Moscow's revenue from oil and gas exports by nearly 30% in January, or about $8 billion, from a year-ago period, International Energy Agency (IEA) chief Fatih Birol said on Sunday. - Iraq will discuss with Washington this week how to pay dues owed to Russian oil companies despite sanctions, Foreign Minister Fuad Hussein said on Monday. - Indian Oil Corp will sign an agreement with LanzaJet to produce cleaner aviation fuel at its Panipat refinery in northern India, the state-run refiner's Chairman S. M. Vaidya told Reuters on Monday. 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 603.74 -13.66 617.4 Diff - 0.5% VLSFO 22.68 -2.46 25.14 Cargo - 180cst 360.76 -3.95 364.71 Diff - 180cst -4.89 -1.31 -3.58 Cargo - 380cst 355.50 -3.23 358.73 Diff - 380cst 0.95 -0.14 1.09 Bunker (Ex-wharf) Premium - 380cst 7.50 -0.50 8.00
Bunker (Ex-wharf) Premium - 0.5% VLSFO 25.00 -1.00 26.00
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 Shounak Dasgupta)

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