Cargo differentials for both very low sulphur fuel oil (VLSFO) and high sulphur fuel oil (HSFO) dipped on Tuesday, as the market turned cautious ahead of the OPEC+ meeting later this week when the oil producers are expected to discuss the output policy in the coming months.

The market also closely watched the resumption progress at Kuwait’s al-Zour refinery, which has been shut down since last week. The refinery said it is working to restore operations within 10 days, but some market participants raise doubt on the timeline.

Cash premium for very low sulphur fuel oil (VLSFO) drifted lower by about $2.92 to $26.46 a metric ton.

Cargo differentials for 380-cst HSFO FO380-SIN-DIF fell 52 cents to a discount of $3.94 per metric ton to Singapore quotes, while 180-cst HSFO was down 58 cents to a discount of 25 cents per metric ton.

OTHER NEWS

– Oil fell on Tuesday, reversing steep gains made in the past two sessions, as investors turned cautious ahead of a meeting of OPEC+ this Sunday when the producer group may discuss deepening supply cuts due to slowing global growth.

– As the world’s most powerful oil producers ponder further supply cuts, Russia has little incentive for a radical change as its energy revenue is strong, oil prices are higher than its forecasts and its budget deficit is narrowing.

– Indonesia’s state oil company Pertamina Hulu Energi (PHE) estimated its oil and gas production this year at 1.043 million barrels of oil equivalent per day (BOEPD), up 8% from last year, its chief executive Wiko Migantoro said on Tuesday.

WINDOW TRADES O/AS

– 180-cst HSFO: No trade
– 380-cst HSFO: No trades
– 0.5% VLSFO: Two trades
Source: Reuters (Reporting by Muyu Xu; Editing by Shweta Agarwal)