Asia’s fuel oil market continued to firm on Thursday amid stronger backwardation timespreads, while inventories at key trading hub Singapore fell to three-week lows.
The 380-cst high sulphur fuel oil (HSFO) cash premium climbed to $6.25 a metric ton, while its October/November timespread widened by $2.25 day-on-day to $14.25 a ton at Asia close.
Meanwhile, the 0.5% very low sulphur fuel oil (VLSFO) cash premium was pegged higher at $11 a ton, while the October/November timespread climbed $1.30 day-on-day to $14.55 a ton.
Refining margins steadied after gaining in the previous day. The October 380-cst HSFO crack closed at a discount of $10.55 a barrel at the Asia close, while 0.5% VLSFO crack closed at a premium of $8.93 a barrel.
In tenders, Kuwait’s KPC offered 60,000 tons of 380-cst HSFO for loading between Oct. 4 and 5.
SINGAPORE INVENTORIES
Onshore fuel oil stocks fell 9.5% to 19.77 million barrels (3.11 million metric tons) in the week to Sept. 27, Enterprise Singapore data showed.
Brazil was the top origin for Singapore’s fuel oil imports at 252,000 tons, with imports up for a second straight month, while imports from Turkey, which last emerged in early August, appeared at 111,000 tons in the week.
Bangladesh was the top destination for fuel oil exports, at 45,000 tons. Source: Hellenic Shipping News
