Spot differentials for fuel oil were little changed in Asia on Monday, with trading momentum overall thin.
Offers for very low sulphur fuel oil (VLSFO) softened from the previous session, pulling differentials slightly lower.
High sulphur fuel oil (HSFO) continued to see a wide buy-sell gap between bids and offers, with differentials holding steadily in discounts.
Reflecting the weakness in HSFO, the hi-five spread remained wide at about $88 a metric ton, based on LSEG data. (FO05-380SGMc1)
Meanwhile, Pakistan’s PARCO offered HSFO for loading in August, according to a notice on its website as well as industry sources. The tender closes on Tuesday.
REFINING UPDATES
– U.S. crude oil refiner Phillips 66 plans to operate its refineries in the low to mid-90% range of combined capacity of 1.5 million barrels per day in the third quarter, Chief Financial Officer Kevin Mitchell said during a conference call with analysts.
OTHER NEWS
– Oil prices edged higher on Monday as investors assessed a trade deal between the United States and the European Union, while a stronger U.S. dollar and lower oil imports by India weighed on prices.
– Venezuela’s state-run oil company PDVSA is getting ready to resume work at its joint ventures under terms similar to Biden-era licenses, once U.S. President Donald Trump reinstates authorizations for its partners to operate and export oil under swaps, company sources said.
– India’s crude oil imports in June fell 4.7% month-on-month to 20.32 million metric tons, the lowest since February, government data showed on Monday.
– Qatar has threatened to cut gas supplies to the European Union in response to the bloc’s due diligence law on forced labour and environmental damage, a letter from Qatar to the Belgian government, seen by Reuters, showed.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters