Cash differentials for fuel oil held steady on Monday amid thin trade, while the price difference between very-low sulphur fuel oil (VLSFO) and 380-cst high sulphur fuel oil (HSFO) continued to narrow.
Spot 0.5% VLSFO MFO05-SIN-DIF was pegged at a discount of 34 cents per metric ton to Singapore quotes, while front-month crack LFO05SGDUBCMc1 weakened to a premium of $6.81 a barrel.
Meanwhile, the cash differential for 380-cst high sulphur fuel oil FO380-SIN-DIF was pegged at a premium of $12.88 a ton, while the front-month crack FO380DUBCKMc1 closed lower at a discount of $8.31 a barrel.
The premium for 0.5% VLSFO over 380-cst HSFO, also known as the Hi-5 spread, was at $96 a ton at the Asia close, Refinitiv data showed. FO380DUBCKMc1
FUJAIRAH BUNKER SALES
Sales of bunker fuel edged lower in June at the UAE’s Fujairah, while total sales in the first half of 2023 slipped 10.5% compared with 2022, latest data from the Fujairah Oil Industry Zone (FOIZ) showed.
June bunker volumes, excluding lubricants, were at 605,374 cubic metres (about 600,000 metric tons), down 2.4% month-on-month and 6.5% lower than the same month last year, while volumes for H1 2023 totalled about 3.55 million metric tons.
Prices of delivered 0.5% low-sulphur fuel oil have softened to near parity to Singapore cargo quotes in June, erasing premiums seen at the start of 2023, traders said.
OTHER NEWS
– Oil dropped by more than 1% on Monday after weaker-than-expected Chinese economic growth fuelled concern over demand in the world’s second-biggest oil consumer while a partial restart of halted Libyan output added pressure.
– China’s daily oil refinery throughput in June rose 1.6% from a month ago, official data showed on Monday, as refiners resumed operations after completing spring maintenance and ramped up production to meet summer travel demand.
– Indian state fuel retailers’ gasoil and gasoline sales during July 1-16 declined from the same period in the previous month, preliminary data showed, as widespread heavy rain upended travel demand.
– Saudi Arabia said on Sunday it remains committed to securing oil supplies for Japan and will continue cooperating with Tokyo on clean hydrogen, ammonia and recycled carbon fuels.
WINDOW TRADES O/AS
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Devika Syamnath)