Asia’s fuel oil refining cracks were little changed on Monday despite a sharp rally in crude oil prices.

The 0.5% very-low sulphur fuel oil (VLSFO) crack for November closed at $9.48 a barrel on Monday, compared with $9.30 a barrel on Friday, based on LSEG data.

Meanwhile, the 380-cst high sulphur fuel oil (HSFO) crack inched higher to a discount of $12.72 a barrel.

Cash differentials also held steady amid largely thin trade.

The spot market has recently found a more stable ground following volatile swings earlier this month, industry sources said.

OTHER NEWS

– Oil prices surged more than 2% on Monday as military clashes between Israel and the Palestinian Islamist group Hamas ignited fears of a wider conflict in the Middle East.

– China has issued a fourth batch of 2023 crude oil import quotas, raising the volume for the year to 203.64 million tons, three refinery sources with direct knowledge of the issue said.

– Russia’s ban on gasoline exports and cross-border sales of diesel by railway remains in place, Deputy Prime Minister Alexander Novak said on Monday.

– OPEC raised its world oil demand forecasts for the medium and long term in an annual outlook and said $14 trillion of investment is needed to meet this demand even as renewable fuel use grows and more electric cars appear on the road.

WINDOW TRADES

– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: One trade
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Sohini Goswami)