Thin activity persisted in Asia’s spot fuel oil market on Tuesday, though cracks for high sulphur fuel oil (HSFO) retained support.
Cash differentials for high sulphur fuel oil (HSFO) were pegged slightly higher day-on-day, reflecting a slight rebound in market structure at prompt months.
However, some trade sources eyed capped recovery in the HSFO spot market as supplies remained plentiful, while demand from the bunkering sector was lacklustre.
Forward cracks for HSFO retained strength, buoyed by recent weakness in crude prices and prospects of seasonal demand from the Middle East. Singapore 380-cst HSFO cracks (FO380BRTCKMc1) closed stable at discounts near 65 cents a barrel on Tuesday.
Meanwhile, the very low sulphur fuel oil (VLSFO) cash differential dipped as offers softened for prompt loading dates, while cracks (LFO05SGBRTCMc1) closed at premiums near $9 a barrel.
REFINERY UPDATES
– India’s Haldia Petrochemicals Ltd will begin a planned maintenance turnaround at its petrochemical complex in eastern India on April 16, a company spokesperson said on Tuesday.
– Indian Oil Corp will build a 1.5 million tons per year dual feed naphtha cracker near its Paradip refinery in Eastern Odisha state, chairman A S Sahney said on Tuesday.
– U.S. oil refiners are expected to have about 1.54 million barrels per day of capacity offline in the week ending April 11, increasing available refining capacity by 282,000 bpd, research company IIR Energy said on Monday.
OTHER NEWS
– Oil prices were up around 1% on Tuesday, rebounding from a near four-year low in the previous session on concerns that U.S. tariffs might depress demand and lead to a global recession, though analysts warned downside risks remain.
– Goldman Sachs forecast that Brent and WTI crude prices would be at $62 a barrel and $58 by December 2025 and at $55 and $51 by December 2026, respectively, under two assumptions.
– Black Sea CPC Blend oil exports for April were revised down to 1.6 million barrels per day, or 6.2 million metric tons, from 1.7 million bpd in the preliminary plan, two sources said.
– Vitol made a net profit of $8 billion to $8.5 billion in 2024, a steep drop from record highs of 2022 and 2023 but still exceeding rivals by a wide margin despite lower volatility, two industry sources familiar with the results said.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters