Fuel oil cash differentials were steady to higher in Asia on Thursday, while onshore inventories dipped for a third straight week, latest data showed.
Singapore’s 0.5% very low sulphur fuel oil cash differential rose to a premium of $17.19 a ton, while refining crack climbed to a premium of $9.73 a barrel.
Meanwhile, 380-cst high sulphur fuel oil cash differential was relatively steady at a discount of $1.05 a metric ton, while refining crack was flat at a discount of $14.05 a barrel.
In tenders, Kuwait’s KPC offered HSFO for end October loading, closing on Thursday.
SINGAPORE INVENTORIES
Onshore fuel oil stocks fell 7.2% to 17.97 million barrels (2.83 million metric tons), hitting three-month lows, data from Enterprise Singapore showed.
A strong market backwardation continued to spur selling interest, with the balance-October/November timespread pegged at $20 a ton on Thursday.
Malaysia was the top origin for Singapore’s net fuel oil import volumes at 263,000 tons in the week to October 11, while China was the top destination for net fuel oil export volumes at 100,000 tons, the data showed.
OTHER NEWS
– Oil prices rose on Thursday on expectations that U.S. interest rates had peaked, but a lower demand growth forecast for next year from the International Energy Agency and higher U.S. inventories limited further gains.
– Russian wholesale diesel and gasoline prices declined further on Thursday after Moscow’s decision last week to mostly lift a fuel export ban, though some restrictions, including on gasoline cross-border sales, remain in place.
– Mohammad Ali, Pakistan’s caretaker energy minister, said on Thursday that Islamabad was considering signing a long-term deal to buy between 0.7 million and 1 million tons (up to 20,000 bpd) of Russian oil per year, the TASS news agency reported.
– Saudi Energy Minister Prince Abdulaziz bin Salman and Russian Deputy Prime Minister Alexander Novak said on Thursday that both countries seek closer trade ties.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Shweta Agarwal)