Spot differentials for fuel oil were little changed on Thursday, while onshore inventories at Singapore climbed to their highest in 16 weeks.
The uptick in inventories emerged after imports more than doubled week-on-week. The top supply origins were Brazil, Indonesia and Nigeria.
Asia’s spot benchmarks have been capped in recent trading sessions amid an amply supplied market, trade sources said.
Cash differential for very low sulphur fuel oil (VLSFO) inched slightly higher on Thursday as a trade emerged following days of thin activity, while high sulphur fuel oil (HSFO) was stable.
The VLSFO traded at $3 a metric ton over cargo quotes, similar to a deal done one week ago.
However, fuel oil cracks closed at weaker values versus the previous day despite a slide in crude prices.
Singapore 380-cst HSFO crack (FO380BRTCKMc1) fell to a discount near 90 cents a barrel on Thursday, while VLSFO crack (LFO05SGBRTCMc1) retreated to a premium of $9.25 a barrel, showed data compiled by LSEG.
INVENTORY DATA
– Singapore onshore fuel oil stockpiles (STKRS-SIN) were at 22.02 million barrels (about 3.47 million metric tons) in the week to April 9, up 4.5% from the previous week and hovering above typical averages, showed Enterprise Singapore data.
OTHER NEWS
– Oil prices retreated on Thursday as U.S. President Donald Trump ramped up a trade war with China, even as he announced a 90-day pause on tariffs aimed at other countries.
– Many buyers of Venezuelan oil have resumed loading crude onto tankers after a week-long hiatus at the country’s ports after the U.S. applied tariffs that President Donald Trump imposed on importers of the OPEC nation’s oil, according to shipping data and documents.
– The United States has withdrawn from talks in London looking at advancing decarbonisation in the shipping sector and Washington will consider “reciprocal measures” to offset any fees charged to U.S. ships, according to a diplomatic note seen by Reuters.
– The Maritime and Port Authority of Singapore has received a total of 14 proposals to scale up the supply of liquefied natural gas for marine fuel, the government body said on Thursday.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: One trade
Source: Reuters