Cash premiums for fuel oil gained on Wednesday, with differentials for very low sulphur fuel oil rising above $4.50 per metric ton.

HSFO cash premiums for 180-cst grade gained 50 cents at $4.07 per ton, while 380-cst grade also rose 33 cents to $4.84 a ton.

In tenders, Indian Oil sold 23,000-25,000 tons of fuel oil for loading during Aug. 19-20 from Chennai port to energy trader Vitol, market sources said.

At the deals window, 40,000 tons of VLSFO changed hands after a gap of six trading sessions, market participants said.

OTHER NEWS

– The U.S. Energy Information Administration on Tuesday forecast tighter supply and demand balances for oil markets in the country this year, while also lowering its outlook for crude prices, according to its Short-Term Energy Outlook.

– Saudi Aramco will buy from Japan’s Sumitomo Chemical 4005.T a 22.5% stake in their petrochemical joint venture Petro Rabigh for $702 million, the companies said on Wednesday, as part of a turnaround plan for the loss-making venture.
Source: Reuters (Reporting by Mohi Narayan; Editing by Shreya Biswas)