Cash premiums for very low sulphur fuel oil (VLSFO) declined on Tuesday, while premiums for high sulphur fuel oil grades steadied after sliding for three straight sessions.

Cash premiums for VLSFO cargoes fell 17 cents to $4.30 per metric ton. HSFO cash premiums for 180-cst grade gained 33 cents at $3.57 per ton, while 380-cst grade also rose 33 cents to $4.51 a ton.

“The mid-term outlook for the low-sulphur market is softer on the back of more supply of low-sulphur volumes from Kuwait’s Al-Zour plant and emerging African flows from the newly commissioned Dangote plant to soften the current fundamentals,” LSEG Research said in a note.

In tenders, India’s HPCL offered three cargoes of 33,000 tons each of 380-cst grade fuel oil for loading during Aug. 23-24, Sept. 2-4 and Sep 12-14 from Vizag port in a tender that closed on Monday, market participants said.

Another refiner BPCL offered 180-cst grade of fuel oil from Mumbai port for delivery during Aug. 20-22 in a tender that closes on Tuesday.

– Oil prices pared gains in volatile trade as fears of an escalation in the Middle East conflict and a drop in production at Libya’s largest Sharara oilfield raised the prospect of tight supplies.

– Fitch Ratings has downgraded Dangote Industries Limited’s (DIL) credit rating to B+, and put it on ratings watch negative, citing concerns about its liquidity and ability to raise money.

– Oil giant Saudi Aramco reported a 3.4% fall in second-quarter profit on lower crude volumes and softer refining margins.
Source: Reuters (Reporting by Mohi Narayan; Editing by Shailesh Kuber)