Asia’s refining cracks for very low sulphur fuel oil (VLSFO) posted weekly losses as crude prices headed for weekly gains, while ample fuel oil supplies to Asia also weighed on the market.

Front-month January cracks for VLSFO fell more than 16% from the previous week, standing at a premium of $9.09 a barrel to Dubai quotes at Friday’s Asia close (0830 GMT).

High sulphur fuel oil (HSFO) cracks also came under pressure. The front-month 180-cst HSFO crack posted a weekly drop of more than 40%, down to a discount of $18.55 a barrel on Friday.

Spot cash premiums were relatively unchanged on Friday amid an absence of trade. The 180-cst HSFO market remained in discounts to Singapore quotes, the 380-cst HSFO market held in a small premium, while the VLSFO cash differential was also stable from the previous day.

ARA INVENTORIES (STK-FO-ARA)

Fuel oil inventories in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell by 2% week-on-week to 1.06 million tonnes in the week ended Dec. 15, latest data from Dutch consultancy Insights Global showed.
Source: Reuters