Margins for high sulphur fuel oil logged weekly declines in Asia amid sell-offs, while very low sulphur fuel oil (VLSFO) was largely rangebound, data showed on Friday.
Prompt-month cracks for 380-cst HSFO (FO380BRTCKMc1) closed at premiums of about $2.25 a barrel, down 40% from the previous week. The cracks reached fresh highs near $4 a barrel earlier this month.
Trade sources said that HSFO cracks have pared from recent highs, but are still expected to retain strength into June amid seasonal drivers.
Meanwhile, VLSFO cracks (LFO05SGBRTCMc1) closed at about $11.65 a barrel, showing a steady-to-softer trend from last week. Spot differentials eased for a fourth straight session.
More tenders continued to emerge in the spot market. India’s IOC offered fuel oil cargoes for June loading, via a tender that closes early next week, based on industry sources.
OTHER NEWS
– Oil prices were on track for a second consecutive weekly decline on Friday, weighed down by expectations of another OPEC+ output hike in July and fresh uncertainty after the latest legal twist kept U.S. President Donald Trump’s tariffs in place.
– Ecuador’s state oil producer Petroecuador on Thursday declared a 60-day emergency at the South American nation’s largest oil refinery, its second emergency in one month, after a fire this week caused damage to some fuel tanks.
– The 650,000-barrel-per-day Dangote oil refinery in Nigeria is expected to operate its gasoline-making unit at reduced rates through October after a string of issues in recent months, industry monitor IIR Energy told Reuters.
– The White House is weighing a plan to clear a record backlog of requests from small refineries for exemptions from U.S. biofuel laws, which could include approving many current applications and requesting industry input to deal with older ones, according to three sources familiar with the plans.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters