Asia’s high sulphur fuel oil (HSFO) market extended gains for a second consecutive session on Wednesday, while the market eyed import demand from China and shipping tensions in the Red Sea.
Singapore’s 380-cst HSFO cash premium climbed to $10 a metric ton, with the product trading higher for loading dates in the second half of January.
There was no significant disruption spotted for Russian supplies to Asia as yet, said industry sources, though the market continued to keep tabs on developments in the region.
The strength likely came from expectations of firmer Chinese uptake, following the release of more import quotas late last year, industry sources said.
Refining cracks for 380-cst HSFO closed higher at discounts of nearly $8.50 a barrel on Wednesday. FO380DUBCKMc1, FO380BRTCKMG4
In contrast, low-sulphur fuel benchmarks softened, with cash premium sliding to $5 a metric ton, while cracks for February slipped to premiums of about $13 a barrel.
FUJAIRAH INVENTORIES FUJAIRAH
Inventories at Fujairah FUJHD04 dipped 1.9% to 9.95 million barrels (1.57 million tons) in the week to Jan. 1, showed FOIZ data published by S&P Global Commodity Insights.
OTHER NEWS
– Oil prices were little changed on Wednesday after sharp moves earlier in the week, as markets weighed concerns about the U.S. economy against potential supply disruptions from ongoing tensions in the Red Sea.
– OPEC+ plans to hold a meeting of its Joint Ministerial Monitoring Committee in early February, though an exact date has not been decided, three sources from the alliance said.
– Denmark’s Maersk and Germany’s Hapag-Lloyd said on Tuesday their container ships would continue to avoid the Red Sea route that gives access to the Suez Canal following a weekend attack on one of Maersk’s vessels.
– Venezuela has agreed to give India’s ONGC Videsh some oil in lieu of the company’s pending dividend for a stake in a project in the South American nation, India’s oil secretary said on Wednesday.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: Two trades
– 0.5% VLSFO: Two trades
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Krishna Chandra Eluri)