Singapore's front-month crack for 0.5% very low sulphur fuel oil (VLSFO) dipped to a premium of $8.52 a barrel at the Asia close (0830 GMT) while the crack for 380-cst high sulphur fuel oil (HSFO) fell to a discount of $11.21 a barrel.
Fuel oil supplies to Asia hit three-month highs of 5.98 million tonnes in April, dominated by Russian flows that account for more than 85% of the total arrivals, based on Refinitiv Oil Research this week.
However, out of this total volume, Middle Eastern exports dropped ahead of the region's summer demand season.
Singapore's cash premium for HSFO held steady at $7.25 a tonne on Wednesday, with high-sulphur supplies likely to tighten amid lower exports from the Middle East.
Meanwhile, VLSFO's cash premium edged slightly higher at a premium of $3.73 a tonne, though steady offers of blendstocks are expected to cap the market's recovery.
Poorer gasoil margins in recent weeks could prompt refiners in Asia to offer these components in the market instead of diverting them to middle distillate production, trade sources said.
FUJAIRAH INVENTORIES Residual fuel oil stocks at Fujairah climbed 7% to 10.87 million barrels (1.71 million tonnes) in the week ended April 17, according to Fujairah Oil Industry Zone data published by S&P Global Commodity Insights.
OTHER NEWS
- Oil dropped on Wednesday as the market weighed potential interest rate hikes from the U.S.
Federal Reserve that could slow growth and dampen oil consumption, offsetting falling U.S.
inventories and strong Chinese economic data.
- Chinese oil refinery throughput surged to a record in March, data showed on Tuesday, as
refiners stepped up runs to capture strong export demand and build up inventories ahead of
planned maintenance.
- Saudi Aramco offered more vacuum gasoil supplies to be exported from its Jizan refinery in
May, according to traders and shipping data, in a sign that the refinery is yet to ramp up to
full output.
- Russian oil giant Rosneft is demanding compensation from Germany's economy ministry for
losses related to seizure of its Schwedt refinery, Russian news agencies reported on Tuesday,
citing the company's lawyers.
WINDOW TRADES - 180-cst HSFO: No trade - 380-cst HSFO: Two trades - 0.5% VLSFO: No trade
ASSESSMENTS
FUEL OIL
CASH ($/T) ASIA CLOSE CHANGE PREV CLOSE RIC
Cargo - 0.5% VLSFO 585.04 -6.44 591.48 Diff - 0.5% VLSFO 3.73 0.65 3.08 Cargo - 180cst 463.04 -6.32 469.36 Diff - 180cst 2.31 0.66 1.65 Cargo - 380cst 462.60 -7.32 469.92 Diff - 380cst 7.25 0.00 7.25 Bunker (Ex-wharf) Premium - 380cst 11.00 -1.00 12.00
Bunker (Ex-wharf) Premium - 0.5% VLSFO 9.00 0.50 8.50
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 David Goodman
)
