Spot premiums for fuel oil were rangebound in Asia on Tuesday as the market continued to eye upcoming supply loadings in the later half of the month, while refining cracks edged slightly higher after crude prices dipped.
The Singapore cash premium for very low sulphur fuel oil (VLSFO) was little changed at about $1 a metric ton, even though the market structure remained weaker at the prompt months.
July cracks for VLSFO remained above $8 a barrel, based on LSEG data at 0830 GMT.
High sulphur fuel oil (HSFO) benchmarks also held to a tight range after a recent uptrend stalled, with the 380-cst HSFO cash premium hovering between $11 and$12 a ton in recent sessions.
Meanwhile, refining cracks for 380-cst HSFO firmed at discounts of $5.85 a barrel on Tuesday.
INCOMING SUPPLIES
Fuel oil supplies to East Asia were pegged above 4 million tons for June, compared with about 5.65 tons in May, based on data from LSEG Oil Research this week, though some trade sources eyed more loadings for HSFO in the second half of the month.
OTHER NEWS
– Oil prices steadied on Tuesday as investors waited for key U.S. and China CPI data, as well as the outcome of the Federal Reserve’s policy meeting to glean a clearer picture of where inflation is heading and how that will affect fuel demand.
– Saudi crude oil exports to China will fall in July for a third straight month to about 36 million barrels amid plant maintenance and as some refiners opted for other sources of cheaper oil, several trade sources said on Tuesday.
– China’s Hengyi has increased fuel oil exports from its Brunei refinery this month and has delayed loadings of other refined products following a fire at the plant in late May, according to several trade sources and ship-tracking data.
– Global commodities trader Glencore has won a tender to supply crude oil to Prax’s 113,000-barrel per day Lindsey oil refinery in Britain, replacing rival trader Trafigura, three sources with knowledge of the deal told Reuters.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Tasim Zahid)