Spot premiums for fuel oil inched higher in Asia on Monday, supported by stronger bids, though refining margins were rangebound from last week as ample inventories capped strength.

Singapore cash premium for 380-cst high sulphur fuel oil (HSFO) traded at $5 a metric ton over cargo quotes, while the premium for very low sulphur fuel oil (VLSFO) was pegged above $2 a metric ton due to a stronger bid for mid-January.

The recent uplift was largely driven by the derivatives market, which saw some buying interest strengthening for prompt intermonth spreads, trade sources said.

Margins were little changed. Singapore 380-cst HSFO cracks (FO380DUBCKMc1) held at discounts narrower than $4 per barrel, while VLSFO cracks (LFO05SGDUBCMc1) closed at premiums above $10 per barrel, based on LSEG data.

OTHER NEWS

– Oil prices fell on Friday on worries about demand growth in 2025, especially in top crude importer China, putting global oil benchmarks on track to end the week down nearly 3%.

– President-elect Donald Trump threatened to reassert U.S. control over the Panama Canal, accusing Panama of charging excessive rates to use the Central American passage and drawing a sharp rebuke from Panamanian President Jose Raul Mulino.

– Nigeria’s Dangote Refinery is now operating at 85% capacity and is on course to deliver European-standard products by January, an executive said.

– U.S. crude oil exports to northwest Europe are likely to slip early next year after hitting a record high in November, as the arbitrage for transatlantic shipments has slammed shut and freight rates have climbed, analysts said.

WINDOW TRADES

– 180-cst HSFO: No trade
– 380-cst HSFO: One trade
– 0.5% VLSFO: No trade
Source: Reuters