Spot fuel oil premiums in Asia edged up on the first trading day of 2025, buoyed by stronger-priced bids, though inventories remained high at oil hub Singapore.
Onshore fuel oil storage volumes dropped slightly from the previous week, but remained well above 20 million barrels amid strong inflows from Russia and the United Arab Emirates, data showed on Thursday.
The market is eyeing capped recovery in price benchmarks at the start of 2025 due to the ample supply backdrop.
The Singapore cash differential for Very Low Sulphur Fuel Oil (VLSFO) was pegged higher on Thursday but held at a narrow premium below $3 a metric ton to cargo quotes.
Meanwhile, a spot deal emerged for 380-cst High Sulphur Fuel Oil (HSFO) on Thursday, with the product trading higher at $8 a metric ton to cargo quotes.
Refining margins held largely stable. Front-month VLSFO cracks (LFO05SGDUBCMc1) closed at premiums slightly above $10 per barrel, while 380-cst HSFO cracks (FO380DUBCKMc1) were at discounts of about $5.25 per barrel, based on LSEG data.
In tenders, Pakistan’s PARCO offered 50,000 tons of HSFO for loading in mid-January. The tender closes on Thursday, based on a document on its website.
Source: Reuters
