Asia’s refining margin for high sulphur fuel oil (HSFO) posted a sharp weekly decline as of Friday after the spot market eased in recent sessions.

The September 380-cst HSFO crack fell to a discount of $6.69 a barrel at 0830 GMT, sliding more than 70% from last week.

The product’s spot cash differential had tumbled through the week, before steadying near a premium of $11.97 a metric ton to Singapore quotes on Friday.

Meanwhile, Asia’s very low sulphur fuel oil (VLSFO) market struggled to find direction amid a lack of fresh drivers.

Cash differential for 0.5% VLSFO rose to a premium of $6.02 a metric ton, while September crack closed at a premium of $11.22 a barrel.

The Hi-5 spread has also widened to $113.75 a ton by Friday, recovering for a third straight day after the 380-cst HSFO market collapsed.

ARA INVENTORIES STK-FO-ARA

Inventories at ARA fell 1.1% to 1.27 million tons in the week to Aug. 24, latest data from Dutch consultancy Insights Global showed.

OTHER NEWS

– Oil headed for a second week of declines even as it rose on Friday, as the dollar firmed before a speech by Federal Reserve Chair Jerome Powell while concerns over tight supply eased.

– Turkey’s foreign and energy ministers met the head of Iraq’s semi-autonomous Kurdistan regional government for talks on Thursday, including on oil exports, which Turkey has blocked from the region since March this year.

– Japan started releasing treated radioactive water from the wrecked Fukushima nuclear power plant into the Pacific Ocean on Thursday, a polarising move that prompted China to announce an immediate blanket ban on all aquatic products from Japan.

– Unions at Chevron’s liquefied natural gas facilities in Australia on Friday warned that work stoppages could cost the U.S. energy major billions in exports if workers’ demands on wages and conditions were not met.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Shilpi Majumdar)