Asia high sulphur fuel oil (HSFO) spot premiums extended declines for a third day, with offers softening for July-loading parcels as prompt supply appeared to remain ample.
Cash premium for 380-cst HSFO was pegged below $5 a metric ton, while backwardation between July and August narrowed.
Cracks for both HSFO and very low sulphur fuel oil (VLSFO) closed at lower premiums from the previous day, LSEG data showed.
In tenders, India’s BPCL offered HSFO for loading between July 3 and 4, closing on June 20, according to market sources.
Separately, Kuwait’s al-Zour sold a cargo of VLSFO for loading between June 28 and 29. The cargo is going to a Japanese trading house, sources said.
INVENTORY DATA
– Singapore residual fuel inventories fell 9.3% week-on-week to 21.5 million barrels (roughly 3.39 million metric tonnes) in the week to June 18, Enterprise Singapore data showed.
OTHER NEWS
– Oil prices rose on Thursday after Israel and Iran continued to exchange missile attacks overnight and U.S. President Donald Trump’s stance on the conflict kept investors on edge.
– Goldman Sachs estimates a geopolitical risk premium of around $10 per barrel, following the rise in Brent prices to $76-77 per barrel, the bank said in a note.
– Commercial ships are sailing close to Oman and are being advised by maritime agencies to avoid Iran’s waters around the Strait of Hormuz, with the risk of the conflict between Israel and Iran escalating, shipping sources said.
– U.S. oil major Chevron has sought non-binding bids for the sale of its 50% stake in Singapore Refining Company, including from joint venture partner PetroChina, eight sources familiar with the matter told Reuters.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: One trade
Source: Reuters