Asia’s high sulphur fuel oil (HSFO) market strengthened slightly on Monday, while very low sulphur fuel oil (VLSFO) eased on lower offers.
The 380-cst HSFO cash differential was pegged at a narrower discount to Singapore quotes, as market structure continued to recover for the prompt months. (FO380-SIN-DIF)
VLSFO cash differential was pegged at a lower premium as softer offers emerged for April and May loading. (MFO05-SIN-DIF)
Spot trade remained largely thin in recent sessions though the market eyed a couple of tenders closing on Tuesday.
India’s HPCL offered three cargoes of fuel oil, each of 33,000 tons, for various loading dates in May.
Meanwhile, Nigeria’s Dangote offered 80,000 to 88,000 tons of atmospheric residue for loading between April 24 and 26.
Refining cracks posted diverging trends, with Singapore 380-cst HSFO crack (FO380BRTCKMc1) climbing to a premium of 80 cents a barrel at the Asia close, while VLSFO crack (LFO05SGBRTCMc1) dipped slightly to a premium of $9.50 a barrel, LSEG data showed.
BUNKER DATA
Marine fuel sales in Singapore improved in March after hitting a 20-month low in February, latest data showed.
Volumes totalled 4.47 million metric tons, climbing 7.8% month-on-month. Aggressive selling had pressured bunker premiums and spurred more spot purchases, some market sources said.
OTHER NEWS
– Oil prices edged up on Monday after Chinese data showed a sharp rebound in crude imports in March, although concerns that the escalating trade war between the United States and China would weaken global economic growth and dent fuel demand weighed.
– At least two vessels carrying Venezuelan crude chartered by Chevron are stalled due to state oil company PDVSA canceling their export authorizations, according to shipping data and sources, as the government had no certainty of payment amid the hardening of U.S. sanctions on the OPEC-member country.
– Valero Mexico said it was notified by the country’s tax authority that it had been “momentarily” suspended from the registry of importers for motor fuels but that it was cooperating with an investigation.
– Countries at the U.N. shipping agency struck a deal on Friday on a global fuel emissions standard for the maritime sector that will impose an emissions fee on ships that breach it and reward vessels burning cleaner fuels.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters