Spot premiums for 380-cst high sulphur fuel oil (HSFO) continued to soften in Asia on Wednesday, though bunker prices held their ground amid persisting tightness in the prompt delivery market, trade sources said.
Singapore’s 380-cst HSFO cash premium traded down to $5 per metric ton on Wednesday, sliding for a fifth consecutive session.
However, bunker premiums for the fuel remained strong despite a weakening cargo market as prompt replenishment remained tight, sources said. Singapore ex-wharf bunker premiums for 380-cst HSFO were holding above $20 per ton, they added.
Meanwhile, delivered bunker premiums for 0.5% low sulphur fuel oil (VSLFO) were rangebound between $20 to $25 per ton this week, though cargo benchmarks have shown signs of easing for the second-half of October.
Refining margins for fuel oil gained on Wednesday. Cracks for 380-cst HSFO closed at discounts of about $9.10 a barrel on Wednesday, while VLSFO cracks closed at premiums of $12.75 a barrel.
INVENTORY DATA
– Fujairah heavy fuel inventories slumped 11.4% to 7.50 million barrels (1.18 million tons) in the week to Oct. 30, hitting their lowest in more than 34 months, based on latest FOIZ data published by S&P Global Commodity Insights.
OTHER NEWS
– Oil prices slid by more than 2% on Tuesday as a stronger supply outlook and tepid global demand growth outweighed fears over escalating conflict in the Middle East and its impact on crude exports from the region.
– Russian oil product exports from the Black Sea port of Tuapse are set to fall to 0.312 million metric tons in October, down 69.1% from the 0.978 million tons scheduled for September, two traders said on Tuesday.
– U.S. East Coast and Gulf Coast dockworkers began their first large-scale strike in nearly 50 years on Tuesday, halting the flow of about half the country’s ocean shipping, after negotiations for a new labor contract broke down over wages.
– Guyana received bids from major energy companies seeking a 12-month marketing contract to trade the government’s share of crude produced in the country, the country’s National Procurement and Tender Administration Board said.
Source: Reuters (Reporting by Jeslyn Lerh)