Asia’s very-low sulfur fuel oil (VLSFO) market strengthened on Thursday, despite a term tender issued recently by Kuwait’s Al Zour refinery supplies.
The refinery had issued a term tender for VLSFO for July to December loading, trade sources said, a move that comes while it continues to ramp up its third crude distillation unit (CDU).
The first cargo is expected to load between July 15 and 19, with a volume of about 100,000 tonnes, while volumes to be lifted for subsequent months will be fixed at a later date, sources said. The tender closes on June 19.
However, Asia’s cash premium for VLSFO extended gains in recent sessions as prompt supply is expected to tighten on steady bunkering demand and limited blend stocks. The cash premium (MFO05-SIN-DIF) rose to $9.95 a tonne over Singapore quotes on Thursday.
The product’s front-month margin (LFO 05 BCMc1) was little changed, closing at a premium of $12.60 a barrel at the Asia close (0830 GMT).
Meanwhile, high sulfur fuel oil (HSFO) held relatively steady. The spot 380-cst HSFO cash premium (FO380-SIN-DIF) eased slightly at $2 a tonne over Singapore quotes, while the front-month margin (FO380DUBCKMc1) climbed to a discount of $8.39 a barrel.
SINGAPORE INVENTORIES
Weekly residual fuel oil stocks climbed to seven-week highs in Singapore, with net imports more than doubling from the previous week, official data showed on Thursday.
Onshore fuel oil stocks (STKRS-SIN) rose 9% to 21.25 million barrels (3.35 million tonnes) in the week ended June 14, up for a third consecutive week, Enterprise Singapore data showed.
Weekly net imports, calculated by subtracting total exports from total imports, more than doubled to 797,000 tonnes.
Source: Hellenic Shipping News
