The spot cash premium for 0.5% very low sulphur fuel oil (VLSFO) was pegged lower at $12.15 a tonne, as front-month backwardation narrowed day-on-day to $10.75 a tonne at the Asia close (0830 GMT).
Meanwhile, cash premium for 380-cst high sulphur fuel oil (HSFO) was pegged at $5.80 a tonne, as front-month backwardation crunched by nearly 50% day-on-day to $3.50 a tonne by 0830 GMT.
Despite the daily declines, the overall market was still set for support into the coming weeks, especially for the high-sulphur product.
Fuel oil inventories at key trading hub Singapore edged down by more than 10% from last week as net imports continued to decline, official data showed on Thursday.
Weekly net fuel oil imports, which are calculated by subtracting total exports from total imports, fell 23% week-on-week to 542,000 tonnes.
SINGAPORE INVENTORIES Residual fuel oil stocks at key trading hub Singapore fell by 11% to 20.62 million barrels (3.25 million tonnes) in the week to May 3, based on Enterprise Singapore data.
FUJAIRAH INVENTORIES Fujairah fuel oil inventories rose 3% to 9.96 million barrels (1.57 million tonnes) in the week to May 1, based on Fujairah Oil Industry Zone data published by S&P Global Commodity Insights. OTHER NEWS - Oil prices rose on Thursday, but were unable to claw back the more than 9% decline during the previous three days, as demand concerns in major consumers overrode signals that the U.S. may pause its interest rates increases. - A drone attack set ablaze product storage facilities at one of the largest oil refineries in southern Russia, but emergency services extinguished the fire just over two hours later, and the plant was working normally, TASS news agency reported.
- Uniper expects two announced asset sales, requested by the European Commission in exchange for approving the German utility's bailout, to close soon, the company's chief financial officer told analysts on Thursday.
- The United Nations on Thursday aims to raise the final $29 million needed to start salvaging 1.1 million barrels of oil from a decaying vessel moored off war-torn Yemen's coast and avert an environmental disaster.
WINDOW TRADES - 180-cst HSFO: No trade - 380-cst HSFO: No trade - 0.5% VLSFO: No trade
ASSESSMENTS
FUEL OIL
CASH ($/T) ASIA CLOSE CHANGE PREV CLOSE RIC
Cargo - 0.5% VLSFO 528.63 -17.15 545.78 Diff - 0.5% VLSFO 12.15 -1.19 13.34 Cargo - 180cst 410.11 -17.42 427.53 Diff - 180cst 2.23 -1.02 3.25 Cargo - 380cst 408.15 -17.33 425.48 Diff - 380cst 5.80 -1.20 7.00 Bunker (Ex-wharf) Premium - 380cst 11.00 -1.00 12.00
Bunker (Ex-wharf) Premium - 0.5% VLSFO 13.00 -1.00 14.00
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 Shilpi Majumdar)
