Asia spot premiums for very low sulphur fuel oil (VLSFO) dipped further on Thursday, while its cracks were largely rangebound in recent sessions unlike high sulphur fuel oil (HSFO).
The Singapore VLSFO cash differential was pegged below $11 a metric ton on Thursday, with a trade emerging for later dates into June. Meanwhile, front-month VLSFO cracks closed near $12 a barrel, based on LSEG data.
VLSFO has pared back in recent sessions, weighed by tepid demand in the spot bunkering market.
In contrast, HSFO continued to undergo volatile movements, with cracks holding in strong premiums, though spot markets showed contrasting fundamentals, industry sources said.
Meanwhile, Kuwait’s KPC offered two cargoes of 380-cst HSFO for loading in June, via a tender that closes on Thursday, according to sources.
INVENTORY DATA
– Singapore residual fuel inventories were at 21.51 million barrels (about 3.39 million metric tons) in the week to May 21, rebounding after three weeks of drawdowns, Enterprise Singapore data showed.
OTHER NEWS
– Oil prices fell on Thursday as unexpected increases in U.S. crude and fuel inventories raised concerns about demand from the world’s largest oil consumer while investors eyed renewed Iran-U.S. nuclear talks.
– OPEC+ members are discussing whether to agree on another large production increase at their meeting on June 1, Bloomberg News reported on Thursday.
– India’s Russian crude oil imports will hit close to 1.8 million barrels per day in May, the highest in 10 months, ship tracking data from Kpler showed, after refiners snapped up more light grades such as ESPO Blend.
– Guangdong Pearl River Investment Management Group said it has signed a 15-year sales and purchase agreement to buy liquefied natural gas from ConocoPhillips.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: One trade
Source: Reuters