Amid the comparatively lower margins, refiners in Asia are likely to channel less blending components to the VLSFO pool, which could cap regional VLSFO production for early Q2.
However, tepid downstream bunkering demand is expected to limit the upside in the cargo market. Bunkering premiums on a delivered basis were in a tight range of $10 to $15 so far this week, showing little recovery from the previous week, trade sources said Tuesday.
OTHER NEWS
- Oil prices were little changed on Tuesday as concerns about limited spare capacity in the market and Russian supply uncertainty offset mixed oil data from top crude importer China.
- The second phase units for Kuwait's Al Zour refinery are now operating, state news agency KUNA cited KIPIC CEO Waleed Al-Badr as saying on Tuesday. - Russia began diesel exports to Saudi Arabia in February as it seeks to contend with an EU embargo on Russian supplies, traders said and Refinitiv data shows.
- Fuel deliveries and refining was disrupted at several French refinery and storage sites operated by TotalEnergies and Esso on Tuesday due to a strike against the government's planned pension reform.
WINDOW TRADES - 180-cst HSFO: One trade - 380-cst HSFO: One trade - 0.5% VLSFO: One trade
ASSESSMENTS
FUEL OIL
CASH ($/T) ASIA CLOSE CHANGE PREV CLOSE RIC
Cargo - 0.5% VLSFO 606.87 19.03 587.84 Diff - 0.5% VLSFO 5.54 4.20 1.34 Cargo - 180cst 462.98 0.94 462.04 Diff - 180cst 7.03 -1.71 8.74 Cargo - 380cst 451.35 3.72 447.63 Diff - 380cst 9.28 0.28 9.00 Bunker (Ex-wharf) Premium - 380cst 10.00 -1.50 11.50
Bunker (Ex-wharf) Premium - 0.5% VLSFO 10.00 2.00 8.00
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 Uttaresh Venkateshwaran)
