off-the-wire

Asia Fuel Oil-HSFO cash premiums retreat, Hi-5 spread may widen

Kitco Media
By Reuters
Published:
Updated:
Reuters
NEW DELHI, March 13 (Reuters) - Spot fuel oil premiums for high sulphur fuel oil (HSFO) declined on Monday, although a flurry of trades at the Singapore window kept the downside limited. The 180-cst HSFO cash differential dipped to $3.23 a tonne, while the 380-cst HSFO cash differential fell to $7.35 a tonne. In physical markets, PetroChina and P66 continued their buying spree for a second week and snapped up a total of 120,000 tonnes of high sulphur grade. According to FGE estimates, the Singapore Hi-5 (VLSFO-HSFO) spread is expected to widen in April as very low sulphur fuel oil (VLSFO) cracks rebound on lower inflows from the West, while the strength in HSFO cracks should wane with higher availability in the region. "Thereafter, the Hi-5 spread should narrow from June to August as higher HSFO demand for power generation in the Middle East and South Asia will support HSFO cracks," analysts at FGE said in a note. NEWS - The Kremlin on Monday asked about reports that India is abiding by a price cap on Russian oil exports imposed by Western countries, said that it will be guided its own contacts with India, rather than by news reports. - Strikes blocking fuel deliveries from French refineries continued for a sixth day on Monday, after the Senate voted over the weekend to adopt President Emmanuel Macron's unpopular pension reform plan. - China's top refiner Sinopec Corp 600871.SS has started a partial maintenance at its Jinling refinery in Nanjing, according to a post on the company's official Weibo account. SINGAPORE CASH DEALS - 180-cst HSFO: Two trade - 380-cst HSFO: Four trade - 0.5% VLSFO: No trade


PRICES
FUEL OIL
CASH ($/T) ASIA CLOSE CHANGE PREV RIC CLOSE
Cargo - 0.5% VLSFO 578.16 11.11 567.05 Diff - 0.5% VLSFO 3.95 -0.55 4.5 <MFO05-SIN- DIF> Cargo - 180cst 445.09 14.75 430.34 Diff - 180cst 3.23 1.06 2.17 <FO180-SIN- DIF> Cargo - 380cst 438.20 16.68 421.52 Diff - 380cst 7.35 0.35 7.00 <FO380-SIN- DIF> Bunker (Ex-wharf) 7.75 -7.25 15.00
Premium - 380cst
Bunker (Ex-wharf) 10.75 -0.25 11.00
Premium - 0.5% VLSFO



For a list of derivatives prices, including margins, please
double click the RICs below.
Brent M1 <BRENTSGMc1


>
180cst M1 <FO180SGSWM


c1>
180cst M1/M2 <FO180SGSDM


c1>
180cst M2 <FO180SGSWM


c2>
Visco M1 <FOVISSGDFM


c1>
Visco M2 <FOVISSGDFM


c2>
380cst M1 <FO380SGSWM


c1>
380cst M1/M2 <FO380SGSDM


c1>
380cst M2 <FO380SGSWM


c2>
Cracks 180-Dubai M1 <FO180SGCKM


c1>
Cracks 180-Dubai M2 <FO180SGCKM


c2>
East-West M1 East-West M2 Barges M1 <HFOFARAAMc


1>
Barges M1/M2 <HFOFARAASM


c1>
Barges M2 <HFOFARAAMc


2>
Crack Barges-Brent M1 <HFOFARAACM


c1>
Crack Barges-Brent M2 <HFOFARAACM


c2>

(Reporting by Mohi Narayan; editing by Uttaresh Venkateshwaran)

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