Asia’s high sulphur fuel oil (HSFO) market extended further gains on Thursday amid a flurry of bidding activity, while the very low sulphur fuel oil (VLSFO) market trended weaker in contrast due to low spot demand.
The spot 180-cst cash differential (FO180-SIN-DIF) rose to $7.48 a tonne over Singapore quotes, striking five-month highs after bids and trades firmed from the previous day, while 380-cst HSFO also firmed, with its cash differential climbing to $7.50 a tonne.
The viscosity spread (FOVISSGDFMc1) widened for a fifth trading session to $25.25 a tonne at the Asia close (0830 GMT).
Meanwhile, 0.5% VLSFO retained downward pressure as demand held soft in downstream sectors, while weekly landed inventories fell as sellers tried to clear stocks with aggressive offers.
The 0.5% VLSFO cash differential (MFO05-SIN-DIF) slumped to $3.05 a tonne on Thursday, hitting five-month lows.
SINGAPORE INVENTORIES
Onshore fuel oil stocks fell 9% to a five-week low of 20.60 million barrels (3.24 million tonnes) in the week ended March 1, Enterprise Singapore data showed.
The drawdown was also due to a fall in weekly net imports, which softened 38% week-on-week to 502,000 tonnes.
OTHER NEWS
– Oil prices edged higher on Thursday, though gains made on signs of a strong economic rebound in top crude importer China were kept in check by fears over the impact of potential increases to European interest rates.
– China’s seaborne imports of Russian oil are set to hit a record this month after refiners took advantage of cheap prices as domestic fuel demand rebounded, but Russia’s plan to cut exports will likely cap buying in coming months.
– Russian oil product exports from the Black Sea port of Tuapse in February were down 23% from initial plans at 1 million tonnes after harsh winter storms in the area, traders said and Refinitiv data showed.
– Refiners’ profit from making gasoline has tripled in Asia this year from October lows amid tight supplies from China and hopes of record Indonesian demand, a trend that is likely to continue into summer driving season, traders and analysts said.
WINDOW TRADES
– 180-cst HSFO: Three trades
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Hellenic Shipping News
