Fuel oil cash premiums were little changed on Tuesday amid quiet trade, while market structure also weakened on lower liquidity.
Singapore’s cash premium for 0.5% very low sulphur fuel oil was pegged at $6.80 a metric ton, while cracks closed at premiums of $12.83 a barrel.
Meanwhile, the 380-cst high sulphur fuel oil cash premium was pegged at $5.17 a metric ton, while cracks closed at discounts of $9.49 a barrel.
Intermonth spreads for all key grades narrowed from last week, with backwardation softening.
In tenders, Taiwan’s CPC offered low sulphur straight run fuel oil for January loading. The tender closes on Dec. 27 with validity until Dec. 29.
CHINA IMPORT QUOTAS
China has set the import quota for fuel oil at 20 million metric tonnes for non state-owned firms in 2024, the commerce ministry said on Tuesday.
China issued a total of 19.2 million tons of fuel oil import quotas for non-state firms in 2023, comprising an initial 16.2 million tonne batch in January and an additional 3 million tonnes in November.
RED SEA UPDATES
Some of the world’s largest shipping firms, including Maersk and CMA CGM, will impose extra charges after they re-routed ships in response to attacks on vessels in the Red Sea, as worries about disruption to global trade grow.
Denmark’s Maersk is preparing to resume shipping operations in the Red Sea and the Gulf of Aden, the company said on Sunday, citing the deployment of a U.S.-led military operation designed to ensure the safety of commerce in the area.
OTHER NEWS
– Oil prices rose on Tuesday as investors focused on geopolitical tensions in the Middle East and optimism that the U.S. Federal Reserve would soon start cutting interest rates, lifting global economic growth and fuel demand. O/R
– Iran denied on Monday a U.S. claim that a drone launched from Iran had struck a chemical tanker in the Indian ocean.
– Shanghai International Energy Exchange has increased the trading margin ratio and expanded the trading bands on some futures contracts for its container shipping index linked to European service, it said on Monday.
– Foreign shareholders suspended participation in the Arctic LNG 2 project due to sanctions, renouncing their responsibilities for financing and for offtake contracts for the new Russian liquefied natural gas plant, the daily Kommersant reported on Monday.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Shailesh Kuber)