Spot premiums for high sulphur fuel oil (HSFO) dipped in Asia on Tuesday despite ongoing tensions in the Middle East.
Vessels continued to transit the Strait of Hormuz, market sources said, though there might be some risk to loadings depending on whether the conflict escalates.
Singapore cash premium for 380-cst HSFO slipped to near $8 a metric ton, though cracks closed higher day-on-day at premiums above $2 a barrel, LSEG data showed.
Meanwhile, cash premium for very low sulphur fuel oil (VLSFO) was pegged higher, reflecting a firmer-priced trade. The product’s cracks closed near $11 a barrel, broadly stable from the previous day.
BUNKER DATA
Marine fuel sales at the Fujairah port hit a three-month low in May, data showed, while market sources said they are monitoring the situation in June as conflict flares between Israel and Iran, heightening regional tensions.
Bunker sales, excluding lubricants, totalled 614,296 cubic metres (about 608,000 metric tons) at the Middle Eastern bunker hub in May, based on Fujairah Oil Industry Zone (FOIZ) data published by S&P Global Commodity Insights.
OTHER NEWS
– Oil prices rose on Tuesday amid rising disruptions from the Iran-Israel conflict, although major oil and gas infrastructure and flows have so far been spared from any substantial impact.
– Two oil tankers collided and caught fire on Tuesday near the Strait of Hormuz, where electronic interference has surged during conflict between Iran and Israel, but there were no injuries to crew or spillage reported.
– The chief executive of Italy’s Eni said on Tuesday that the Israel-Iran conflict has not led to a loss in oil production, and that the Organization of the Petroleum Exporting Countries still has spare production capacity.
– Japan’s second-largest shipping company, Mitsui O.S.K. Lines, is continuing normal operations in the Gulf while closely monitoring the situation in the region, CEO Takeshi Hashimoto said on Tuesday.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: One trade
– 0.5% VLSFO: One trade
Source: Reuters