Spot cash differentials for fuel oil in Asia firmed on Wednesday on stronger bids, while landed stocks at Fujairah fell to seven-month lows, the latest data showed.

The 380-cst high sulphur fuel oil (HSFO) market rebounded recently despite incoming Russian barrels, with its spot cash differential climbing to $2.85 a tonne to Singapore quotes. Steady bunkering demand for the grade kept the market buoyed, market sources said.

Meanwhile, the 0.5% very low sulphur fuel oil (VLSFO) market firmed to a spot premium of $14.80 a tonne to Singapore quotes, rising for a seventh consecutive session.

FUJAIRAH INVENTORIES

Residual fuel oil stocks at Fujairah sank 11% to seven-month lows, at 8.97 million barrels (1.41 million tonnes) in the week ended Jan. 16, showed data from the Fujairah Oil Industry Zone published by industry information service S&P Global Commodity Insights.

FUJAIRAH BUNKER SALES

Total sales of low-sulphur marine fuels, including low-sulphur fuel oils (LSFO) and marine gasoils (MGO), were down 4.4% from the previous year at about 6.2 million tonnes in 2022, Reuters calculations based on the data showed.

Meanwhile, sales of high-sulphur fuel oils (HSFO) were at about 1.5 million tonnes, up 12.3% from 2021. The market share of high-sulphur bunker fuel volumes expanded to 20% in 2022, versus 17% in 2021.
Source: Reuters