Fuel oil cash premiums slipped further in Asia on Friday, while more supply tenders for end-October and November were underway.

The very low sulphur fuel oil (VLSFO) cash premium fell for a fourth day to $18.45 a metric ton, while refining crack declined to $9.76 a barrel.

High sulphur fuel oil (HSFO) also came under pressure, with the 380-cst cash premium FO380-SIN-DIF easing to 45 cents a ton, while refining crack FO380DUBCKMc1 slipped to a discount of $16.18 a barrel.

Tenders for November-loading cargoes gathered pace this week, based on trade sources and shipping records.

Kuwait’s KPC offered 380-cst HSFO for end-October loading as it ramps up HSFO spot sales, while India’s MRPL offered VLSFO marine fuel for November loading.

CHINA DATA
China’s fuel oil imports eased for a third consecutive month in September, hitting the lowest in the year so far, data from the General Administration of Customs showed.

Total fuel oil imports were down 25% from August at 1.04 million tons in September, though still 3% higher compared to the same month last year.

Imports have eased in the third quarter amid high inventory levels, while bunker hub Zhoushan remains well-supplied with local output and previous import purchases.

ARA INVENTORIES
Inventories at ARA STK-FO-ARA slipped to 17-month lows, sliding 11.1% week-on-week to 0.96 million tons in the week to Oct. 19, data from Dutch consultancy Insights Global showed.

OTHER NEWS
– Oil prices gained on Friday and were on track to rise for a second week on heightened fears that the Israel-Gaza crisis may spread in the Middle East and disrupt supply from one of the world’s top-producing regions.

– Rising costs of crude oil are squeezing profits at China’s independent refineries amid stiff competition for limited Russian supply, while the price of Venezuelan crude gains ground after the U.S. freed up sanctions on its industry.

– The share of Russian oil in India’s overall imports rose to about two-fifths in the first half of fiscal 2023/24, consolidating Moscow’s position as the top supplier as refiners curbed purchase from the Middle East, industry data showed.

– Vietnam is seeking investment from oil giant Saudi Aramco 2223.SE in its petrochemical and oil refinery projects, the Southeast Asian country’s government said.

WINDOW TRADES O/AS
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: One trade
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Varun H K)