Spot premiums for fuel oil were broadly stable in Asia on Monday, while several Southeast Asian tenders for August cargoes were in progress, based on industry sources and shipping records.
Thailand’s Thai Oil offered 18,000 metric tons of High Sulfur Fuel Oil (HSFO) for loading from Sriracha between August 7 and 9 in a tender that closes on Tuesday.
Indonesia’s Pertamina offered 200,000 barrels of Marine Fuel Oil (MFO) for loading from Cilacap between August 21 and 22, via a tender that closes on Monday. In early August, Vietnam’s Nghi Son offered 28,000 tons of fuel oil for loading.
Fuel oil benchmarks for the spot market changed little, as trading momentum remained largely thin.
Cash premiums for 180-cst and 380-cst HSFO hovered near $6 per ton, while cracks dipped towards discounts of about $6.25 per barrel, based on LSEG data.
Meanwhile, the cash premium for Very Low Sulfur Fuel Oil (VLSFO) held near $7 per ton, while margins steadied between premiums of $10.60 to $10.70 per barrel.
CHINA DATA
Data showed on Saturday that China’s total fuel oil imports slipped 11% to 11.95 million tons in the first half of 2024 amid weak refining margins and poor fuel demand.
Imports surged to a decade high in 2023 after independent refineries boosted purchases of discounted oil blended from Russian barrels.
However, buying has cooled off this year, with monthly imports sliding towards the end of the second quarter.
Meanwhile, fuel oil export volumes for bunkering totaled 9.05 million tons in the first half of 2024, down 8.3% from the same period in 2023.
Source: XM
