Asia’s very low sulphur fuel oil market remained under downward pressure on Tuesday, as key exporter Al Zour continued to ramp up supply tenders.
Kuwait’s Al Zour refinery has issued another tender offering VLSFO for early June, shortly after it closed two tenders last week. The refinery offered 120,000 to 150,000 tonnes for loading between June 8 and June 9, in a tender that closes on May 23, sources said.
The cash premium for 0.5% low sulphur fuel oil (MFO05-SIN-DIF) inched lower to $9 a tonne to Singapore quotes, while front-month margin (LFO05SGDUBCMc1) declined to a premium of $9.33 a barrel at 0830 GMT.
Meanwhile, the high sulphur fuel oil (HSFO) market has also come under pressure recently as ample supplies lingered in Asia.
Singapore’s 180-cst HSFO cash premium slipped to 75 cents over Singapore quotes on Tueday as spot offers for June softened further, while 380-cst HSFO premium fell to $4.75 a tonne. Front-month margin for 380-cst HSFO (FO380DUBCKMc1) also eased day-on-day, closing at a discount of $8.58 a barrel.
HSFO supplies continued to flow East, with arrivals pegged at around 1.4 million tonnes, climbing compared with April when they were at below 1 million tonnes, Refinitiv ship-tracking data showed.
OTHER NEWS
– Oil prices slipped on Tuesday as investor concern over the risk of a U.S. debt default dampened risk appetite, although a tighter market due to a seasonal rise in gasoline demand and supply cuts from OPEC+ producers lent support.
– Shell has cut crude oil imports at its Singapore refinery this month and is relying on smaller tankers after extending repairs at its single buoy mooring facility to June, according to government notices and shipping data.
– Iraq’s oil minister Hayan Abdel-Ghani said on Tuesday that Baghdad was waiting on a final answer from Turkey to resume its northern oil exports through the port of Ceyhan.
– Nigeria commissioned Dangote Refinery on Monday amid hopes of transforming the country into a net exporter of petroleum products, but analysts said securing crude supplies could affect it achieving full production this year.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters