Asia’s cash premiums for ultra low sulfur fuel oil (VLSFO) at 0.5% hit their highest level in more than a week on Monday, lifted by strong buying interests in the physical market.
Cash premiums for the 0.5% VLSFO in Asia soared to $14.93 a tonne at Singapore quotations, the highest since Feb. 3. They were at $13.97 a ton on Friday.
First-month VLSFO crack rose to $20.65 a barrel against Dubai crude during Asian trading hours from $19.27 a barrel on Friday.
Meanwhile, the 380 cst HSFO barge crack for March traded at $11.88 a barrel against Brent on Monday, from minus $12.54 a barrel at the end of last week.
Cash premiums for 380 cst high sulfur fuel oil (HSFO) climbed to $2.31 a tonne at Singapore quotations, helped by stronger deals in the physical trading window. They were at $1.19 a ton on Friday.
BLUE HYDROGEN
– India’s Reliance Industries Ltd (RELI.NS) plans to produce blue hydrogen at a “competitive cost” of around $1.2-1.5 per kg as it reallocates its gasification assets from 4 billion, the conglomerate said in a presentation.
– Reliance had earlier unveiled plans to reduce reliance on its core oil-to-chemicals business and invested in clean energy projects to restore its green image.
– Reliance will initially use syngas, produced by petroleum coke gasifiers, to make blue hydrogen for its Jamnagar complex in West Gujarat state, until the cost of green hydrogen decline, he said in the presentation released Friday evening.
WINDOW TRADES
– Two 380 cst High Sulfur Fuel Oil (HSFO) deals, no VLSFO trades
OTHER NEWS
– European banks are providing billions of dollars in financing to expand oil and gas production, a report showed on Monday, despite International Energy Agency guidelines against new facilities to slow global warming. Read more
– Oil prices were flat on Monday after hitting their highest level in more than seven years, on fears that a possible Russian invasion of Ukraine could trigger US and EU sanctions that would disrupt exports from one of the major oil producers in the world.
Source: Reuters (Reporting by Koustav Samanta; Editing by Amy Caren Daniel)