Asia’s spot high sulphur fuel oil (HSFO) market slipped into a steeper discount on Thursday, while the very low sulphur fuel oil (VLSFO) market eased after a recent rally.

The cash differential for 380-cst HSFO fell further to a discount of $2.09 a metric ton, while November crack closed at a discount of $15.06 a barrel.

Meanwhile, the 0.5% VLSFO cash differential eased to a premium of $15.95 a ton, while the crack closed at a premium of $7.74 a barrel.

In recent tenders, Taiwan’s CPC offered catalyst fractionator bottom for loading between October and November, while India’s HPCL offered HSFO for loading in end October. Both tenders close on Thusday.

SINGAPORE INVENTORIES

Onshore fuel oil stocks fell 2.0% to 19.37 million barrels (3.05 million tons) in the week to Oct. 4, hitting 11 week-lows, Enterprise Singapore data showed.

Imports into storage have declined in recent weeks amid strong market backwardation, which disincentivises oil storage economics.

The overall decline in fuel oil imports was driven by absent volumes from the Middle East and the West in the week to Oct. 4, as these are typically the top origins for Singapore’s imports.

OTHER NEWS

– Oil prices inched up in early trade on Thursday, clawing back some of the previous session’s big losses after an OPEC+ panel maintained oil output cuts to keep supply tight amid concerns about a looming slump in global economic growth.

– Russian President Vladimir Putin has ordered the government to provide state funds to ensure a smooth heating season, including the introduction of regulated prices for fuel oil supplied for household heating in some regions, the Kremlin said on Thursday.

– A crude oil pipeline from Iraq through Turkey, which has been suspended for about six months, is ready for operations as of Wednesday and Ankara it prepared to begin shipments, Turkish Energy Minister Alparslan Bayraktar said on Thursday.

– Exxon Mobil said that big increases in oil, gas and fuel prices would deliver a third-quarter operating profit between $8.3 billion and $11.4 billion, below the year ago’s record earnings but up from its second quarter.

WINDOW TRADES

– 180-cst HSFO: No trade
– 380-cst HSFO: One trade
– 0.5% VLSFO: Five trades
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Shounak Dasgupta)