Spot fuel oil benchmarks were steady to softer on Wednesday, while the market eyed further concerns of softer bunker demand amid the ongoing global trade conflict.
An expected slowdown in shipping activity is likely to weigh further on demand from the refuelling sector, which has already seen weaker uptake and softer premiums of marine fuel since the start of this year, trade sources said.
Singapore cash differential for 380-cst high sulphur fuel oil (HSFO) was pegged at a wider discount day-on-day, with prompt market structure dipping into a contango. (FO380-SIN-DIF)
Meanwhile, the differential for very low sulphur fuel oil (VLSFO) also dipped amid weaker offers.
Cracks retained support as crude prices continued their downtrend. VLSFO crack for May (LFO05SGBRTCMc1) closed at premiums nearer to $10 a barrel, while 380-cst HSFO crack (FO380BRTCKMc1) closed at discounts near 45 cents a barrel.
Trading momentum in the spot market remained overall thin as with recent sessions.
As for tenders, India’s HPCL offered a cargo for loading from Vizag between April 27 and 29.
INVENTORY DATA
– Fujairah heavy fuel inventories (FUJHD04) rose 1.9% to 13.29 million barrels (2.09 million tons) in the week to April 9, showed FOIZ data published by S&P Global Commodity Insights.
OTHER NEWS
– Oil prices fell for a fifth day to their lowest since February 2021 on Wednesday on looming demand concerns fuelled by an escalating tariff war between the U.S. and China, the world’s two biggest economies, and a rising supply outlook.
– Mitsui O.S.K. Lines (MOL), Japan’s second-largest shipping company, aims to capitalise on opportunities that emerge from a shift in trade routes driven by new U.S. tariffs, CEO Takeshi Hashimoto said.
– Venezuela’s state-run oil company PDVSA is restarting its El Palito refinery’s fluid catalytic cracker, which remained shut for 11 months, to partially offset the suspension of key units at its largest refinery due to a blackout, sources close to its operations said.
– India’s Reliance Industries has shut a crude unit and some secondary units for maintenance for 21 days from this week at its 660,000 barrels-per-day domestic market-focussed refinery, trade sources familiar with the matter said.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters