The spot fuel oil market in Asia was rangebound as of Wednesday amid a lack of fresh drivers, with cash differentials holding steady in single-digit premiums.

Some spot trade continued to emerge for 380-cst high sulphur fuel oil (HSFO), with cash premiums for the grade FO380-SIN-DIF trading at $4 to $5 a metric ton over Singapore quotes.

Meanwhile, very low sulphur fuel oil market (VLSFO) was stable on limited trade, with cash premium MFO05-SIN-DIF pegged unchanged at $6.98 a metric ton on Wednesday.

BUNKER UPDATES

Japan’s top power generator JERA said on Wednesday it would conduct a joint study with shipping major NYK Line and chemical company Resonac to supply ammonia to ships, as it seeks to expand the use of the low-carbon fuel beyond power plants.

The study is the latest among shippers including North Sea Container Line, MOL and Bunker Holding that are exploring ammonia as an alternative marine fuel as they seek ways to cut emissions and meet decarbonisation goals.

JERA said its joint study would look at supplying ammonia to a tugboat to be built using an ammonia-fueled engine developed by NYK Line. The tugboat is scheduled for delivery in June 2024, according to NYK’s website.

OTHER NEWS

– Oil prices extended losses on Wednesday amid oversupply and demand concerns.

– A senior official from Yemen’s Houthis on Tuesday warned cargo ships in the Red Sea to avoid traveling toward Israel, after the Iran-aligned group claimed an attack on a commercial tanker earlier in the day.

– Fuel tankers are facing a long slog as the Panama Canal drought reroutes flows.

– Venezuela’s government foresees a 27% increase in its income from state-run oil company PDVSA next year, according to a document seen by Reuters, after a relaxation in U.S. sanctions and amid planned presidential elections and stagnant production.

WINDOW TRADES O/AS

– 180-cst HSFO: No trade
– 380-cst HSFO: Three trades
– 0.5% VLSFO: No trade
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Shailesh Kuber)