Asia’s hi-5 fuel oil spread held at narrow premiums as of Tuesday, amid a softening market for very low sulphur fuel oil (VLSFO) in recent trading sessions.

The front-month hi-5, which marks the premium of VLSFO over 380-cst high sulphur fuel oil (HSFO), has slipped below $90 a metric ton this week, LSEG data showed.

Trade was largely thin ahead of a holiday, though lower-priced spot offers emerged for VLSFO. These brought the cash premium lower for a sixth trading day to $6.30 a ton on Tuesday.

Meanwhile, cash premium for 380-cst HSFO held steady at levels above $8 a ton, with several bids holding their ground as with previous sessions.

REFINERY UPDATES

– Several independent oil refineries in eastern China have halted operations, or plan to do so, for indefinite maintenance periods as new Chinese tariff and tax policies plunge them deeper into losses, refinery and trade sources said.

– Lyondell Basell Industries began shuttering its 263,776 barrels-per-day Houston refinery on Monday for permanent closure, said people familiar with plant operations.

– Motiva Enterprises began shutting on Monday the gasoline-producing fluidic catalytic cracker at its 626,000 barrels-per-day Port Arthur, Texas, refinery for a planned two-month overhaul, people familiar with plant operations said.

OTHER NEWS

– Oil prices hovered near a two-week low on Tuesday after weak economic data from China and warming weather forecasts elsewhere soured the demand outlook.

– Top oil exporter Saudi Arabia may raise crude prices for Asian buyers in March to their highest in more than a year after benchmark prices spiked on higher demand from China and India as U.S. sanctions disrupted Russian supply, traders said.

– China’s Sinopec plans to raise crude throughput next month to meet a rise in travel demand during the Lunar New Year holiday and compensate for run cuts at independent refiners, trade sources said.

– Indian Oil Corp has bought another 6 million barrels of sweet crude via a tender for April delivery, trade sources said on Monday, as the country’s top refiner seeks to replace Russian oil after U.S. sanctions disrupted supply.

WINDOW TRADES

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