Asia’s 0.5% very low sulphur fuel oil (VLSFO) market was little changed amid thin trade on Wednesday, while bunker premiums trended steady to lower in recent sessions, market sources said.
Cash premiums for 0.5% VLSFO closed at $11.25 a metric ton, while refining cracks dipped slightly to premiums of $11.14 a barrel.
Meanwhile, bunker premiums for 0.5% VLSFO held at about $40 a metric ton this week, though traders said levels have eased as supplies are expected to recover more in the second half of December.
On the high-sulphur front, there was some volatility in recent trading sessions amid some spot trading activity.
The cash differential for 180-cst HSFO slipped into a discount on Wednesday. In contrast, spot 380-cst HSFO flipped from a discount to a premium.
The refining margin for 380-cst HSFO fell, with cracks slipping to discounts of $10.87 a barrel on Wednesday.
FUJAIRAH INVENTORIES
Fuel oil inventories at Fujairah rose 12.3% to 10.69 million barrels (1.68 million tons) in the week to Dec. 4, Fujairah Oil Industry Zone data published by S&P Global Commodity Insights showed.
OTHER NEWS
– Oil prices were steady on Wednesday, as investors weighed the effectiveness of an extension in OPEC+ cuts in tightening supply against a worsening demand outlook in China.
– Top oil exporter Saudi Arabia on Tuesday lowered the price of its flagship Arab Light crude to Asian customers in January for the first time in seven months, sources familiar with the matter said.
– The U.S. Coast Guard said on Wednesday it was responding to an oil discharge near the Main Pass Oil Gathering Co’s pipeline system in the Gulf of Mexico, while the main pipeline and several surrounding ones remained shut in.
– Shell has shortlisted at least four companies, including state-run China National Offshore Oil Corp (CNOOC) and top global energy trader Vitol, as bidders for its Singapore refinery assets, sources with knowledge of the matter said.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: Two trades
– 0.5% VLSFO: No trade
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Pooja Desai)