Spot differentials for Asia high sulphur fuel oil (HSFO) steadied on Friday after sharp declines earlier this week, but ended the week in steep discounts to cargo quotes.
The market remained pressured due to high supplies and slow demand.
Cracks for 380-cst HSFO closed at discounts near $2 a barrel to crude futures, sliding from the previous week.
Meanwhile, the very low sulphur fuel oil (VLSFO) market was firmer, with cracks closing at premiums above $11 a barrel to crude.
The hi-5 marker remained wide at $84.60 a ton on Friday, higher week-on-week as HSFO softened while VLSFO strengthened.
PRICING NEWS
– Commodities pricing agency S&P Global Platts will no longer be reflecting three floating storage units as loading points in its assessments of Singapore fuel oil cargoes and ex-wharf bunker fuel, the company said in a note to subscribers.
OTHER NEWS
– Oil futures fell slightly on Friday after Iran reaffirmed its commitment to nuclear non-proliferation, while major producers from the OPEC+ group are set to agree to raise their output this weekend.
– Saudi oil giant Aramco is looking to sell up to five gas-fired power plants, three sources with knowledge of the matter told Reuters, part of a broader effort to free up funds that could generate tens of billions of dollars.
– Ecuadorean state oil company Petroecuador declared force majeure on all operations, including crude exports, after two key pipelines suspended pumping, the firm’s head said on Thursday.
– Australian oil and gas producer Santos said on Friday it had signed a mid-term liquefied natural gas supply deal with QatarEnergy Trading, a wholly-owned unit of QatarEnergy, the world’s largest exporter of LNG.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: Seven trades
– 0.5% VLSFO: Two trades
Source: Reuters