Asia’s spot high sulphur fuel oil (HSFO) market slipped into a steeper discount on Thursday, while the very low sulphur fuel oil (VLSFO) market eased after a recent rally.
The cash differential for 380-cst HSFO fell further to a discount of $2.09 a metric ton, while the November crack closed at a discount of $15.06 a barrel.
Meanwhile, the 0.5% VLSFO cash differential eased to a premium of $15.95 a ton, while the crack closed at a premium of $7.74 a barrel.
In recent tenders, Taiwan’s CPC offered catalyst fractionator bottom for loading between October and November, while India’s HPCL offered HSFO for loading in end October. Both tenders close on Thursday.
SINGAPORE INVENTORIES
Onshore fuel oil stocks fell 2.0% to 19.37 million barrels (3.05 million tons) in the week to Oct. 4, hitting 11 week-lows, Enterprise Singapore data showed.
Imports into storage have declined in recent weeks amid strong market backwardation, which disincentivizes oil storage economics.
The overall decline in fuel oil imports was driven by absent volumes from the Middle East and the West in the week to Oct. 4, as these are typically the top origins for Singapore’s imports.
Source: Hellenic Shipping News
