Fuel oil benchmarks were largely rangebound in Asia on Tuesday, while Kuwait’s state-owned refiner offered more high sulphur fuel oil (HSFO) for loading later this month.
Kuwait Petroleum Corporation offered 80,000 metric tons of HSFO for loading between July 29 and 30, trade sources said. The tender closes on Tuesday with same-day validity.
This came on top of two more cargoes, each of 60,000 tons, for loading in the same month, based on previous tender records.
The refiner has turned to exporting more HSFO in its summer months this year, while diverting some of its VLSFO production to domestic power generation.
HSFO price benchmarks were little changed in Asia on Tuesday, with cash premiums hovering between $4.50 and $5 per ton, while 380-cst cracks held near discounts of $5 per barrel.
Cracks for the low-sulphur (VLSFO) grade were also largely stable at premiums of about $10.50 per barrel.
Total fuel oil arrivals into East Asia, including all grades, totalled 5 to 5.50 million tons in July, rangebound from June, calculations based on LSEG data showed.
The July volumes comprised about 3 million tons of arbitrage barrels from the West and Russia, which were slightly higher than June.
REFINERY UPDATES
– Indian private oil refiner Nayara Energy is planning to shut a delayed coker and some other units at its refinery in Vadinar for maintenance for about three weeks from end-August or early September, three trading sources said.
– Indonesian state energy company Pertamina expects its Balikpapan refinery’s CDU IV to resume operations later this month, an official at its refinery subholding PT Kilang Pertamina Internasional said.
OTHER NEWS
– Oil prices slipped on Tuesday on worries about a slowing Chinese economy crimping demand, though a growing consensus that the U.S. Federal Reserve will begin cutting its key interest rate as soon as September limited declines. O/R
– Yemen’s Houthis targeted three vessels, including an oil tanker, in the Red and Mediterranean seas with ballistic missiles, drones and booby-trapped boats, they said on Monday.
– Russia might decide to reinstate a gasoline export ban from August should there be supply shortages on the domestic fuel market, Deputy Prime Minister Alexander Novak told reporters.
– Freeport LNG plans to restart one of three liquefied natural gas trains this week at its Texas facility after the company repairs some damage from Hurricane Beryl, it said.
Source: Reuters (Reporting by Jeslyn Lerh; )