Spot premium for very low sulphur fuel oil (VLSFO) dipped in Asia on Tuesday as offers for prompt loading dates softened, though cracks were largely stable compared to the previous day.
Singapore’s cash differential for VLSFO was pegged at $1.65 a metric ton, with offers easing for dates into the second half of September.
The market is still eyeing ample supply into September as with recent months
High sulphur fuel oil (HSFO) benchmarks did show some signs of improvement, with 380-cst cash differentials pegged nearer to parity compared to steeper discounts previously, though available supply still capped recovery.
VLSFO crack (LFO05SGBRTCMc1) closed steady near a premium of $9 a barrel, while 380-cst HSFO crack (FO380BRTCKMc1) rose to a discount of $4.85 a barrel, based on data compiled by LSEG.
OTHER NEWS
– Oil prices rose on Tuesday as concerns about supply disruptions grew amid an escalation of the conflict between Russia and Ukraine, and as the market weighed whether upcoming U.S. jobs data would lead to interest rate cuts.
– Saudi Aramco and Iraq’s state oil company SOMO have stopped selling crude oil to India’s Nayara Energy in the aftermath of sanctions imposed in July by the European Union on the Russian-backed refiner, three sources familiar with the matter said.
– Syria exported 600,000 barrels of heavy crude oil on Monday from the port of Tartus as part of a deal with a trading firm, a Syrian energy official told Reuters, the first known official export of Syrian oil in 14 years.
– European Union countries are considering a 10-year delay to the introduction of EU-wide taxes on aviation and shipping fuels as they seek to push long-delayed energy tax reforms over the line, a draft document seen by Reuters showed.
Source: Reuters