Asia’s spot fuel oil market was steady to firmer on Wednesday as market backwardation firmed, while more tenders for June were underway.
The cash premium for 0.5% very low sulphur fuel oil (MFO05-SIN-DIF) climbed to $7.04 a tonne, while front-month margin (LFO05SGDUBCMc1) rose to a premium of $7.79 a barrel at 0830 GMT.
Meanwhile, cash premium for 380-cst high sulphur fuel oil (FO380-SIN-DIF) closed at $5.62 a tonne, while front-month margin (FO380DUBCKMc1) dipped slightly to a discount of $8.70 a barrel.
In recent tenders, Indonesia’s Pertamina offered residual fuel products for June loading, while Taiwan’s Formosa offered main column bottoms for early June.
FUJAIRAH INVENTORIES
Fujairah fuel oil inventories surged 19% week-on-week to 11.82 million barrels (1.57 million tonnes) in the week to May 8, hitting ten-week highs, showed Fujairah Oil Industry Zone data published by S&P Global Commodity Insights on Wednesday.
Bunkering demand at Fujairah has been slow in recent days, with premiums for marine fuel lagging way behind Singapore, according to trade sources.
OTHER NEWS
– Oil prices fell on Wednesday, ending a three-day rally, as an unexpected rise in U.S. oil inventories sparked demand concerns and investors awaited U.S. inflation data to gauge the next rate decision in the top oil consuming nation.
– Saudi Aramco has told at least five customers in North Asia they will receive full nominated volumes of crude oil in June, several sources with knowledge of the matter said on Wednesday.
– Petroleum dealers have flagged a surge in the smuggling of Iranian fuel to Pakistan, saying that up to 35% of diesel sold in the South Asian country has arrived illegally from Iran, the Pakistan Petroleum Dealers Association (PPDA) told Reuters.
– Australia’s new plans to boost investment in renewable hydrogen production could be a catalyst for more clean energy projects, industry leaders and experts said, as the country races to cut carbon emissions and grow alternative power resources.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters