The fuel oil market in Asia remained at the risk of downside as of Thursday, while onshore stockpiles at key trade hub Singapore rose for a third straight week.
Inventories hit about nine-month highs, led by stronger import volumes from Russia and Indonesia, official data showed.
The market has been under pressure in recent trading sessions, with cash premiums easing across key fuel oil grades.
Singapore’s 0.5% very low sulphur fuel oil cash premium steadied at $1.50 a metric ton on Thursday, while February cracks, dipped towards premiums of $10.50 a barrel.
The 380-cst high sulphur fuel oil market also softened, with premiums FO380-SIN-DIF easing to $4.28 a ton, while cracks, steadied at discounts of about $11 a barrel.
In tenders, Kuwait’s KPC issued a semi-term tender offering two 380-cst HSFO cargoes of 60,000 metric tons each for lifting from Kuwait per month from February to April, sources said.
The cargoes will load from Mina Al Ahmadi or Mina Abdulla ports and the tender closes on Thursday.
INVENTORIES
Singapore fuel oil stocks hit 23.02 million barrels (3.62 million metric tons) in the week to Jan. 10, up 3.1% week-on-week, according to Enterprise Singapore data.
OTHER NEWS
– Oil prices edged higher on Thursday amid concerns about escalating conflict in the Middle East, even as a surprise build in the U.S. crude stockpiles capped gains.
– U.S. and British naval forces shot down 21 drones and missiles fired by Yemen-based Houthis on Tuesday towards the southern Red Sea, the United States said, with Britain hinting at further measures to protect international shipping lanes.
– The United Kingdom Maritime Trade Operations (UKMTO) authority received a report on Thursday that a vessel located around 50 nautical miles east of Oman’s coast was boarded by four to five armed persons.
– Danish energy trader Danske Commodities, owned by oil and gas producer Equinor, said on Thursday it had entered the Japanese power market and completed its first trades there.
WINDOW TRADES O/AS
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: One trade
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Shilpi Majumdar)