The landed stocks climbed despite a drop in weekly net imports, as weaker ship refuelling demand slowed inventory drawdowns, trade sources said. Buying inquiries for bunker fuel slowed in recent days as some shippers took to the sidelines on expectations of lower prices.
Bunker premiums for 0.5% very low sulphur fuel oil (VLSFO) decreased to between $20 and $25 a tonne over Singapore quotes this week, traders said.
The spot cargo market weakened for a fifth consecutive session, with the cash differential easing to $21.85 a tonne over Singapore quotes on Thursday.
SINGAPORE INVENTORIES Onshore fuel oil stocks climbed by 3% to 21.24 million barrels (3.34 million tonnes) in the week ended Feb. 8, Enterprise Singapore data showed.
The uptick emerged despite a decline in weekly net imports, which fell 27% to 509,000 tonnes in the same week. OTHER NEWS
- Oil prices were broadly steady on Thursday as prospects for higher fuel demand in China were offset by concern that U.S. crude stocks hitting their highest for months may signal weakening demand in the world's top economy.
- Hundreds of shipping containers caught fire at Turkey's Iskenderun Port, shutting down operations and forcing freight liners to divert vessels to other ports.
- India's fuel demand slipped in January after hitting a nine-month peak in December, as cold weather in parts of the country reduced movement and industrial activity slowed. - French oil major TotalEnergies posted a record net profit of $36.2 billion in 2022, double the previous year, joining in the sector's bumper earnings following higher oil and gas prices since Russia invaded Ukraine.
WINDOW TRADES - 180-cst HSFO: Two trades - 380-cst HSFO: One trade - 0.5% VLSFO: No trade
ASSESSMENTS
FUEL OIL
CASH ($/T) ASIA CLOSE CHANGE PREV CLOSE RIC
Cargo - 0.5% VLSFO 638.29 13.19 625.1 Diff - 0.5% VLSFO 21.85 0.35 21.50 Cargo - 180cst 396.97 8.98 387.99 Diff - 180cst -6.66 -3.08 -3.58 Cargo - 380cst 397.72 17.09 380.63 Diff - 380cst 3.25 3.00 0.25 Bunker (Ex-wharf) Premium - 380cst 6.00 -1.00 7.00
Bunker (Ex-wharf) Premium - 0.5% VLSFO 22.50 -2.50 25.00
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 Barbara Lewis)
