Spot fuel oil markets retreated on Thursday, while Kuwait’s Al Zour offered a cargo of very low sulphur fuel oil (VLSFO) for loading in late March, trade sources said.
The refiner this week offered 120,000 tons of VLSFO for loading between March 25 and 26.
It was not immediately clear if the cargo will head to Asia or remain in the Middle East.
Singapore’s VLSFO market has been under downward pressure this month due to weak refuelling demand and ample incoming supplies. Spot cash differentials remained in discounts on Thursday.
Meanwhile, the rally in spot 380-cst high sulphur fuel oil (HSFO) pared slightly after intermonth spreads sold off in the derivative markets in the day, sources said.
However, the strength in HSFO is still expected to largely hold for the rest of this month despite an influx in supply, some sources said.
Latest inventory data at Singapore showed higher inflows of fuel oil from Russia, Iraq and the United Arab Emirates. Strong HSFO prices have drawn more cargoes over from these countries.
Separately, Taiwan’s CPC offered catalyst fractionator bottom fuel for loading between March 28 and April 1.
INVENTORY DATA
– Singapore onshore fuel oil stockpiles (STKRS-SIN) were at 17.29 million barrels (2.82 million tons) in the week to March 12, rebounding following a sharp draw last week, Enterprise Singapore data showed.
OTHER NEWS
– Oil prices were largely steady on Thursday after surging in the previous session on a larger-than-expected draw in U.S. gasoline stocks, as markets weighed macroeconomic concerns against firm near-term demand expectations.
– Saudi crude oil supply to top buyer China is set to fall to 34 million barrels in April, trade sources said on Thursday.
– Most of the jet fuel onboard the U.S.-flagged tanker Stena Immaculate that was hit by a container ship in a collision off Britain’s coast remains contained and only two of the vessel’s 18 fuel tanks have leaked, owner Stena Bulk said on Wednesday.
– Global oil supply could exceed demand by around 600,000 barrels per day this year, the International Energy Agency said in a monthly oil market report on Thursday, after a downward revision to its 2025 demand growth forecast.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: One trade
– 0.5% VLSFO: No trade
Source: Reuters