The front-month margin for the product rose to a discount of $9.95 a barrel at the Asia close (0830 GMT), while the market's spot cash premium was stable to higher at $7 a tonne over Singapore quotes.
China's fuel oil imports soared to a decade-high in March at 2.43 million tonnes, the latest customs data showed. Chinese independent refineries continued to seek fuel oil as an alternative feedstock to crude oil, including barrels blended from Russian oil, industry sources said.
Meanwhile, Asia's very-low sulphur fuel oil (VLSFO) also firmed slightly at the start of the new trading week.
The front-month margin for 0.5% VLSFO climbed to a premium of $8.04 a barrel on Monday, while cash premium closed higher at $4.42 a tonne.
OTHER NEWS
- Oil prices were steady on Monday as concerns over rising interest rates, the global economy and the outlook for fuel demand were balanced by the prospect of tightening supplies. - Tankers delivering to ports in China's Shandong province are facing delays in discharging their oil due to orders for tighter customs inspection checks after several Iranian cargoes were declared as diluted bitumen, traders said.
- Indian companies "sometimes" face delays in paying for Russian oil priced above the $60 cap per barrel fixed by the Western nations, India's oil secretary Pankaj Jain said on Monday.
- OPEC's share of India's oil imports fell at the fastest pace in 2022/23 to the lowest in at least 22 years, as intake of cheaper Russian oil surged, data obtained from industry sources show, and the major producers' share could shrink further this year.
WINDOW TRADES - 180-cst HSFO: No trade - 380-cst HSFO: One trade - 0.5% VLSFO: No trade
ASSESSMENTS
FUEL OIL
CASH ($/T) ASIA CLOSE CHANGE PREV CLOSE RIC
Cargo - 0.5% VLSFO 566.46 5.50 560.96 Diff - 0.5% VLSFO 4.42 0.50 3.92 Cargo - 180cst 455.70 6.09 449.61 Diff - 180cst 3.10 0.19 2.91 Cargo - 380cst 454.61 6.66 447.95 Diff - 380cst 7.00 0.20 6.80 Bunker (Ex-wharf) Premium - 380cst 12.00 0.50 11.50
Bunker (Ex-wharf) Premium - 0.5% VLSFO 9.50 0.00 9.50
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 Sohini Goswami)
