Fuel oil cash premiums were little changed in Asia on Monday, while the market eyed recent regional tenders for October.

Cash premium for 0.5% VLSFO was pegged at $8.61 a metric ton, while 380-cst HSFO was pegged at $2.95 a metric ton. Both markets were little changed amid thin spot trade.

In tenders, Philippines is seeking 40,000 tons of 180-cst HSFO for arrival between Oct 18 and 26. The tender closes on Monday.

Separately, Thailand’s PTT and Thai Oil also closed tenders for fuel oil sales recently.

Asia’s refining margins for fuel oil remained range-bound on Monday.

October crack for 0.5% VLSFO closed at a premium of $8.16 a barrel at the Asia close, while 380-cst HSFO crack closed at a discount of $11.68 a barrel.

AMMONIA BUNKERING

Japan’s Itochu Corporation has signed a memorandum of understanding (MoU) with marine fuels supplier Peninsula Petroleum to jointly develop ammonia bunkering in Spain.

The companies are looking to set up supply at the port of Algeciras, said Itochu in a statement on Friday.

OTHER NEWS

– Oil prices rose on Monday as investors focused on a tighter supply outlook after Moscow issued a temporary ban on fuel exports.

– The Russian government has approved some changes to its fuel export ban, lifting the restrictions for fuel used as bunkering for some vessels, a government document showed on Monday.

– Portuguese oil company Galp said on Monday it had teamed up with Japan’s Mitsui to invest 400 million euros ($426 million) in an industrial-scale plant to produce biodiesel and biojet fuel from waste at its Sines refinery.

– The Tokyo Stock Exchange will start trading carbon credits on Oct. 11, launching Japan’s first exchange-based carbon market as the world’s fifth-largest carbon dioxide emitter moves to tackle climate change.

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 Nivedita Bhattacharjee)