Asia’s front-month crack for 0.5% very low-sulphur fuel oil (VLSFO) dipped on Friday, but lingered close to its strongest levels in two years, buoyed by tighter regional supplies.

The front-month VLSFO crack slipped to $19.27 per barrel against Dubai crude during Asian trading hours, down from Thursday’s $19.44 a barrel that was the highest since February 2020.

The crack has gained about 0.7% this week, following a 19% gain last week.

Cash differentials for Asia’s 0.5% VLSFO were at a premium of $13.97 a tonne to Singapore quotes on Friday, compared with $13.96 per tonne on Thursday.

Meanwhile, Asia’s cash premiums for 380-cst high sulphur fuel oil (HSFO) rose to $1.19 per tonne to Singapore quotes on Friday, compared with 75 cents a tonne in the previous session.

ARA INVENTORIES

– Fuel oil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub dropped 10.2% to 1.1 million tonnes in the week to Feb. 10, data from Dutch consultancy Insights Global showed.

– The data showed ARA gasoil inventories rose 0.9% to 1.6 million tonnes.

WINDOW TRADES

– One 380-cst high-sulphur fuel oil (HSFO) deal, no VLSFO trades

OTHER NEWS

– Oil prices eased on Friday as hot U.S. inflation fanned worries about aggressive interest rate hikes and investors await the outcome of U.S.-Iran talks that could lead to increased global crude supply.

– OPEC said on Thursday world oil demand might rise even more steeply this year as the global economy posts a strong recovery from the pandemic, a development that would underpin prices already at a seven-year high.
Source: Reuters