Asia cash premiums for very low sulphur fuel oil (VLSFO) cargo held stable as of Monday, while bunker premiums continued to extend gains in recent sessions.
The benchmark Singapore market has received sustained strength as ongoing Red Sea tensions buoyed refuelling demand from shippers.
Bunker premiums on an ex-wharf basis have trended up to $15-$20 a metric ton over cargo quotes, while bunker premiums on a delivered basis at Singapore were in the $40s range, based on industry sources.
Total incoming fuel oil supplies to Asia look set to decline in February, though high inventory levels in the region capped price gains in cargo prices.
High sulphur fuel oil (HSFO) has come under bearish pressure, in line with earlier market expectations, with multiple sellers emerging to offer the 380-cst product since last week.
Singapore 380-cst HSFO cash differential was pegged at a discount of $4.65 a ton on Monday, while March cracks closed at discounts of about $10 a barrel.
Meanwhile, 0.5% VLSFO cash differential rose slightly to a premium of $7.15 a ton, while margins climbed to premiums of nearly $13 a barrel.
In tenders, Kuwait’s latest Al Zour cargo for loading between Feb. 13 and 14 was sold to P66 at a discount of about $9 to Singapore cargo quotes, industry sources said.
OTHER NEWS
– Oil prices rose on Monday after Washington pledged to launch further strikes on Iran-backed groups in the Middle East and as Ukrainian drones struck southern Russia’s largest refinery.
– The European Commission will not add any new import bans in its next package of sanctions on Russia, EU diplomats said, as a 13th package proposal takes its final shape.
– Exxon Mobil on posted a better-than-expected $36 billion profit for 2023, lifted by fuels trading and higher oil and gas production.
– France’s TotalEnergies is exploring a sale of a 50% stake of a portfolio of renewable projects in Europe and the U.S., according to two people familiar with the matter.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Krishna Chandra Eluri)