The cash differential for very-low sulphur fuel oil (VLSFO) slipped to more than two-year lows in Asia on Wednesday as selling interest persisted.

Multiple sellers were offering the product for spot sales, while bids were absent.

The 0.5% VLSFO cash differential fell to a discount of $1.88 a metric ton to Singapore quotes, sliding for seven consecutive sessions.

The product’s front-month crack also weakened day-on-day to a premium of $6.44 a barrel.

Meanwhile, the high sulphur fuel oil (HSFO) market held steady. The cash differential for 380-cst closed at a premium of $12.70 a ton, while front-month crack FO380DUBCKMc1 rose to a discount of $7.89 a barrel.

FUJAIRAH INVENTORIES

Fuel oil inventories at Fujairah fell 16% to 7.85 million barrels (1.24 million tons) in the week to July 17, hitting 17-month lows, based on Fujairah Oil Industry Zone data published by S&P Global Commodity Insights.

OTHER NEWS

– Global oil prices were little changed on Wednesday as markets weighed U.S. demand concerns against China’s pledge to support economic growth.

– Vietnam has approved a plan to expand its national fuel storage capacity by 2030, with investment of up to 270 trillion dong ($11.4 billion).

– The lifting of oil and gas in Indonesia between January and June fell below target due to unplanned shutdowns and delays in starting projects, upstream regulator SKK Migas said.

– An ongoing energy crisis and an economic downturn is expected to slow global power demand growth in 2023, but a probable rebound in 2024 means more renewable capacity needs to be developed, the International Energy Agency (IEA) said on Wednesday.

WINDOW TRADES O/AS

– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Sonia Cheema)