Spot premiums for high sulphur fuel oil (HSFO) extended gains on Tuesday after firmer bids emerged for parcels loading in late January and early February.
The Singapore cash premium for 380-cst HSFO was pegged above $5 a metric ton, while margins hovered around discounts of $5 per barrel, based on LSEG data for Brent-basis cracks.
Meanwhile, backwardation spreads at the prompt months pared slightly as some selling and profit-taking emerged in the derivatives market, market sources said.
In tenders, Taiwan’s CPC sought 40,000 tons of straight-run fuel oil for February delivery, a notice on its website showed. The tender closes on Tuesday with validity until Thursday.
The fuel oil market continued to eye longer-term impact from the latest U.S. sanctions on Russian producers and ships.
SANCTIONS UPDATES
– Supertanker freight rates jumped after the U.S. expanded sanctions on Russian oil, sending traders rushing to book vessels to ship supply from other countries to China and India, shipbrokers and traders said.
– Six European Union countries on Monday called on the European Commission to lower the $60 per barrel price cap put on Russian oil by G7 countries, arguing it would reduce Moscow’s revenues to continue the war in Ukraine while not causing a market shock.
– Russia’s leading tanker group, Sovcomflot, said on Tuesday that new U.S. sanctions would create additional operational difficulties and accused the West of undermining the global system of merchant shipping.
– The liquefied natural gas vessels due to load at two newly sanctioned Russian export terminals are set to deliver their cargoes mostly to Europe and also to Asia, shiptracking data showed on Tuesday.
