The 180-cst HSFO cash differential dipped to $4.15 a tonne, while the 380-cst HSFO cash differential fell to $6.47 a tonne.
"The high-sulfur market remains firm despite the heavy volumes of Russian arrivals, because the bulk of them are not sold into the marine fuels market," said Emril Jamil, senior analyst for fuel oil at Refinitiv Oil Research. Most of these barrels are likely discharged into floating storages in the region, blended with vacuum gasoil and re-routed to China as refinery feedstocks, he added.
Firm HSFO demand from Chinese independent refiners have kept the market supported, along with expectations of seasonal power generation demand from the Middle East, as Q2 approaches.
FUJAIRAH INVENTORIES Residual fuel oil stocks at Fujairah fell by 13% to 11.51 million barrels (1.81 million tonnes) in the week ended March 6, after extending gains for two consecutive weeks, showed Fujairah Oil Industry Zone data published by S&P Global Commodity Insights.
OTHER NEWS
- Oil prices fell for a second straight session on Wednesday, driven by fears that more aggressive U.S. interest rate hikes would hit demand, while the market awaited further clarity on inventories.
- Russia plans to cut oil exports and transit from its western ports in March by 10% on daily basis from February, according to market sources and Reuters calculations.
- Deliveries from TotalEnergies' refineries were suspended on Wednesday, electricity production reduced and train services seriously disrupted as a nationwide strike against planned pension reforms continued. - Chevron New Energies and Japan'S JERA have signed a memorandum of understanding to explore carbon capture and storage projects in the U.S. and Australia, the companies said in a joint statement on Wednesday.
WINDOW TRADES - 180-cst HSFO: One trade - 380-cst HSFO: Two trades - 0.5% VLSFO: No trade
ASSESSMENTS
FUEL OIL
CASH ($/T) ASIA CLOSE CHANGE PREV CLOSE RIC
Cargo - 0.5% VLSFO 588.03 -18.84 606.87 Diff - 0.5% VLSFO 5.41 -0.13 5.54 Cargo - 180cst 446.10 -16.88 462.98 Diff - 180cst 4.15 -2.88 7.03 Cargo - 380cst 433.67 -17.68 451.35 Diff - 380cst 6.47 -2.81 9.28 Bunker (Ex-wharf) Premium - 380cst 9.00 -1.00 10.00
Bunker (Ex-wharf) Premium - 0.5% VLSFO 11.00 1.00 10.00
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;)
