Spot differentials for key fuel oil grades softened on Monday, while crack spreads also retreated after recent gains.

The spot 380-cst high sulphur fuel oil (HSFO) market was pegged back in discounts to Singapore quotes on Monday, with backwardation trading down at the prompt months.

Cracks for HSFO also retreated after hitting record highs last week, though still holding steadily in premiums over crude oil quotes.

Meanwhile, Thailand’s PTT offered 25,000 tons of 380-cst HSFO for loading between June 22 and 26.

Very low sulphur fuel oil (VLSFO) traded at a lower premium on Monday compared with the previous session’s quotes.

REFINERY UPDATES

– Malaysia’s Pengerang Refining Company (Prefchem) has restarted one of its two residue fluid catalytic cracking (RFCC) units in the past week after shutting it for repairs early this year, four sources familiar with the matter said.

OTHER NEWS

– Oil slipped on Monday, weighed down by Moody’s downgrade of the U.S. sovereign credit rating and official data that showed slowing growth in China’s industrial output and retail sales.

– China’s crude oil throughput fell in April from a year earlier, official data showed on Monday, due to maintenance at state-owned refineries and as independent plants curbed output amid poor margins.

– Indonesia’s Pertamina has issued five tenders to buy nearly 3 million barrels of gasoline a month for delivery between July and December, and excluded Singapore as the origin of supply in two of the tenders, documents showed on Monday.

– A joint venture project developing the first marine fuel facility for liquefied natural gas in the U.S. Gulf Coast has secured final permits and construction is expected to begin later this year, executives involved said on Monday.

WINDOW TRADES

– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: One trade
Source: Reuters