Asia’s fuel oil market held rangebound in thin premiums on Wednesday, while refining cracks softened from the previous day.
The market largely retained bearish pressure amid ample regional supplies, though trade participants kept an eye on whether there will be diversions of western arbitrage supplies in the midst of ongoing tensions in the Red Sea.
Singapore’s cash premium for 0.5% very low sulphur fuel oil was pegged at $5.25 a metric ton on Wednesday, while cracks LFO05SGDUBCMc1 fell to premiums of $12.03 a barrel.
Meanwhile, the high sulphur fuel oil market is expected to find a floor after China issued slightly more fuel oil import quota for 2024.
The 380-cst HSFO cash premium FO380-SIN-DIF was pegged at $5.25 a metric ton, though cracks slipped to discounts of $10.25 a barrel.
INVENTORIES
Fujairah inventories FUJHD04 fell 10.1% to 10.14 million barrels (1.60 million tons) in the week to Dec. 25, showed FOIZ data published by S&P Global Commodity Insights.
RED SEA UPDATES
France’s CMA CGM is increasing the number of vessels travelling through the Suez Canal, it said on Tuesday, joining Maersk in returning to the area after U.S.-led efforts to prevent attacks.
Yemen’s Iran-backed Houthi militia claimed responsibility for a missile attack on Tuesday on a container ship in the Red Sea and for an attempt to attack Israel with drones.
OTHER NEWS
– Oil prices were stable on Wednesday as investors monitored Red Sea developments, with some major shippers resuming passage through the area despite continued attacks and broader Middle East tensions.
– The United States has finalized contracts to purchase three million barrels of oil to help replenish the Strategic Petroleum Reserve (SPR) after the largest sale in history last year, the U.S. Department of Energy said.
– Iran’s oil exports have reached $26.46 billion since March, Iranian state media reported on Tuesday, the Customs Administration head said, quoted by state media.
– Oil loadings from Russia’s Black Sea port of Novorossiisk were suspended on Wednesday due to a storm, two sources familiar with the matter told Reuters.
WINDOW TRADES O/AS
– 180-cst HSFO: No trade
– 380-cst HSFO: One trade
– 0.5% VLSFO: No trade
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Krishna Chandra Eluri )