Spot discounts for 380-cst high sulphur fuel oil (HSFO) deepened on Thursday, while inventories at Singapore remained higher than average for a tenth consecutive week.
The 380-cst HSFO grade traded lower at discounts wider than $7 a metric ton in the spot market. Meanwhile, cracks also posted steeper discounts.
Meanwhile, spot premium for very low sulphur fuel oil (VLSFO) traded largely stable on Thursday at about $4 a ton, though margins edged lower.
Onshore inventories in Singapore rose amid an uptick in imports, led by strong inflows from Middle Eastern countries including Iraq and the United Arab Emirates.
INVENTORY DATA
– Singapore residual fuel inventories rose 1.3% to 23.70 million barrels (3.73 million metric tons) in the week to July 23, based on Enterprise Singapore.
OTHER NEWS
– Oil prices rose more than 1% on Thursday, buoyed by optimism over U.S. trade negotiations that would ease pressure on the global economy and a sharper-than-expected decline in U.S. crude inventories.
– An oil tanker carrying Russian Urals crude has been diverted away from the EU-sanctioned Nayara Energy’s Vadinar port in India to unload its cargo at the port of Mundra, according to shipping data and four industry sources.
– Serbia has sought an extension from the United States on a sanctions waiver for Russian-owned Serbian oil company NIS (NIIS.BEL) for an additional 180 days, Serbia’s mining and energy minister said on Thursday.
– Investors are expecting top U.S. refiners to report higher second-quarter profits, bouncing back from losses during the first three months of the year as unseasonably strong diesel margins boost earnings.
WINDOW TRADES
– 180-cst HSFO: One trade
– 380-cst HSFO: Two trades
– 0.5% VLSFO: One trade
Source: Reuters