Iraq's state-owned marketer SOMO has offered a term contract to supply high-sulphur straight-run fuel oil (SRFO) each month from April to September, industry sources said. The tender will close on Feb. 22, with validity up to 20 days. Meanwhile, Kuwait's national oil company KPC offered 80,000 tonnes of spot 380-cst high-sulphur fuel oil (HSFO) for loading between Feb. 14 and Feb. 15, in a tender that closes Friday. The front-month 380-cst HSFO refining crack fell to a discount of $20.11 a barrel at Friday's Asia close (0830 GMT), though posted mild weekly gains from last week. Margins for 0.5% very low sulphur fuel oil also softened on Friday. The front-month crack was at a premium of $13.16 a barrel at the Asia close, Refinitiv data showed.
ARA INVENTORIES Fuel oil inventories in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rebounded 1% to 1.18 million tonnes in the week ended Feb. 9, latest data from Dutch consultancy Insights Global showed. OTHER NEWS
- Oil prices jumped more than 2% on Friday, heading for weekly gains, as Russia announced plans to reduce production next month after the West imposed price caps on the country's oil and oil products. - Russia will cut oil production by 500,000 barrels per day, or around 5% of output , in March, Deputy Prime Minister Alexander Novak said on Friday, after the West slapped price caps on Russian oil and oil products. - China's February gasoline exports may fall a second straight month to hit their lowest in eight years as domestic consumption rebounds after the nation emerged from COVID lockdowns, industry and market sources said, likely buoying Asian refining margins.
- Saudi Aramco has told at least four customers in North Asia they will receive full
contract volumes of crude oil in March, several sources with knowledge of the matter said.
WINDOW TRADES - 180-cst HSFO: No trade
- 380-cst HSFO: No trade
- 0.5% VLSFO: One trade
ASSESSMENTS
FUEL OIL
CASH ($/T) ASIA CLOSE CHANGE PREV CLOSE RIC
Cargo - 0.5% VLSFO 633.93 -4.36 638.29 Diff - 0.5% VLSFO 20.39 -1.46 21.85 Cargo - 180cst 399.71 2.74 396.97 Diff - 180cst -6.06 0.60 -6.66 Cargo - 380cst 396.38 -1.34 397.72 Diff - 380cst 2.94 -0.31 3.25 Bunker (Ex-wharf) Premium - 380cst 7.00 1.00 6.00
Bunker (Ex-wharf) Premium - 0.5% VLSFO 22.00 -0.50 22.50
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 Savio D'Souza)
