Asia’s spot diffentials for 380-cst high sulphur fuel oil (HSFO) traded sideways on Tuesday amid a frenzy of window deals.

Over 20 spot trades for HSFO emerged on Tuesday, with the window logging its highest daily traded volume in the year to date, according to market sources and compiled data.

Singapore’s cash differential for 380-cst HSFO was pegged higher day-on-day, though still holding in single-digit premiums.

However, margins slipped further in volatile trading, with front-month cracks back into discounts to crude quotes after holding in premiums since mid-April.

Outside of the window, Malaysia’s PRefchem offered 500,000 barrels of atmospheric residue for loading in June via a tender this week.

– Oil steadied on Tuesday, supported by rising geopolitical tensions as Russia and Ukraine ramped up the war and Iran was set to reject a U.S. nuclear deal proposal that would be key to easing sanctions on the major oil producer.

– Refiners across the globe are reaping unexpected profits from producing key fuels in recent weeks, offering an ailing sector respite before an anticipated weakening later this year, as plant closures have tightened fuel supply needed to meet peak summer demand.

– The owners of the Shah Deniz gas field in the Azeri Caspian Sea led by BP made a final decision to invest $2.9 billion on expanding output from the project, BP said on Tuesday.

– Venezuela’s oil exports remained almost unchanged last month as increased shipments to customers in China offset a decline in U.S.-authorized sales, according to vessel-tracking data and internal documents from state company PDVSA.

WINDOW TRADES

– 180-cst HSFO: One trade

– 380-cst HSFO: Over 20 trades

– 0.5% VLSFO: No trade
Source: Reuters