Asia's spot 180-cst HSFO cash differential climbed for a seventh consecutive session to a premium of 96 cents a tonne on Monday, after hovering in discounted territory since end-December last year.
Viscosity cutter stocks, which are used to blend high-viscosity material into bunker fuels, have tightened for the fuel oil pool as refining incentive shifted towards other distillate products amid lower margins for fuel oil.
The front-month viscosity spread , which is the difference between 180-cst HSFO and 380-cst HSFO, widened to $19 a tonne at the Asia close (0830 GMT), a one-month high.
For very low-sulphur fuel oil (VLSFO), cash differentials were range-bound in premiums of the low $10s over Singapore quotes. The 0.5% VLSFO cash differential stood at $11.50 a tonne on Monday. OTHER NEWS
- Oil prices rose on Monday amid optimism over China's demand recovery, concerns that underinvestment will crimp future oil supply and as major producers keep output limits in place. - China's commerce ministry has met independent oil refiners to discuss their deals with Russia, five sources with knowledge of the matter said, imports which have saved Chinese buyers billions of dollars.
- India's Russian oil imports climbed to a record 1.4 million barrels per day (bpd) in January, up 9.2% from December, with Moscow still the top monthly oil seller to New Delhi, followed by Iraq and Saudi Arabia, data from trade sources showed.
- Cyprus is speaking to other European Union member states
to shore up support for the shipping industry hit by sanctions
on Russia, its shipping minister said.
WINDOW TRADES - 180-cst HSFO: Two trades
- 380-cst HSFO: One trade
- 0.5% VLSFO: No trade
ASSESSMENTS
FUEL OIL
CASH ($/T) ASIA CLOSE CHANGE PREV CLOSE RIC
Cargo - 0.5% VLSFO 591.30 6.73 584.57 Diff - 0.5% VLSFO 11.50 -0.20 11.70 Cargo - 180cst 424.05 5.53 418.52 Diff - 180cst 0.96 2.73 -1.77 Cargo - 380cst 406.15 1.48 404.67 Diff - 380cst 2.06 -0.28 2.34 Bunker (Ex-wharf) Premium - 380cst 8.50 -0.50 9.00
Bunker (Ex-wharf) Premium - 0.5% VLSFO 18.50 0.50 18.00
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 Louise Heavens)
