Asia’s front-month crack for 0.5 percent very low-sulphur fuel oil (VLSFO) fell on Friday, but posted a third weekly gain in the wake of tighter supplies.

In Asian trading hours, the front-month VLSFO crack reduced by 3 cents to $19.64 per barrel. However, the crack has increased by about 2% this week, according to Refinitiv statistics.

On Friday, cash differentials for Asia’s 0.5% VLSFO were at a premium of $17.30 per tonne to Singapore quotes, compared to $17.34 per tonne on Thursday.

On Friday, Asia’s cash premiums for 380-cst high sulphur fuel oil (HSFO) fell to $1.60 per tonne to Singapore quotations, compared to $2.10 per tonne a day earlier.

INVENTORIES IN ARA
Fuel oil stocks found in independent capacity in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub climbed 8% to 1 million tonnes in the week until February 17, according to Dutch business Insights Global.

According to data, ARA gasoil inventories fell by 3.4 percent to 1.5 million tonnes.

WINDOW TRADES
One 180-cst high-sulphur fuel oil (HSFO) contract, and no 380-cst HSFO trades.

NO VLSFO trades have been reported.

OTHER SPEEPS
Oil prices extended their losses on Friday, but were expected to fall for a weekly long period, as worries of an additional supply from Iran posed by a Russian invasion of Ukraine eroded.

– If Russia invades Ukraine, Europe’s liquefied natural gas (LNG) terminals have limited capacity to absorb additional supply from the United States or other major producers.
Source: Reuters