The spot high sulphur fuel oil (HSFO) market for the 380-cst grade sank into a discount on Thursday, as selling interest picked up for cargoes loading in the second half of February.
At least six sellers emerged to offer 380-cst HSFO in the spot market on Thursday, with some offers seen in discounts to cargo quotes.
The Singapore 380-cst HSFO cash differential fell to a discount of $3.56 a metric ton, while cracks dipped to discounts of about $12.50 a barrel.
Meanwhile, 0.5% very low sulphur fuel oil (VLSFO) also eased from the previous day, with cash premium sliding to $6.42 a metric ton, while cracks declined to premiums near $12 a barrel.
Kuwait’s Al Zour had offered more VLSFO for loading in February, industry sources said. The tender closes on Thursday with same-day validity.
The broader East of Suez region remains amply supplied, with Singapore onshore fuel oil inventories at more than a nine-month high, latest official data showed.
INVENTORIES
– Singapore inventories climbed 11.6% to 23.44 million barrels (3.69 million metric tons) in the week to Jan. 31, Enterprise Singapore data showed.
– Fujairah inventories fell 2.5% to 8.88 million barrels (1.40 million tons) in the week to Jan. 29, FOIZ data published by S&P Global Commodity Insights showed.
OTHER NEWS
– Oil prices fell on Wednesday as lacklustre economic activity in China weighed on sentiment, but prices were set for their first monthly gain since September as broadening Middle East conflicts raised supply concerns.
– Tankers carrying Russian oil have continued sailing through the Red Sea largely uninterrupted by Houthi attacks on shipping and face lower risks than competitors, according to shipping executives, analysts and flows data.
– Refiner Phillips 66 beat quarterly profit estimates on Wednesday, helped by strong refining margins and gains from its midstream unit, sending its shares up 2.6% to an all-time high of $146.11.
– Belgian oil tanker firm Euronav reported on Thursday fourth-quarter core earnings far above expectations, as it benefited from an increase in maritime oil transport and longer trips due to geopolitical tensions.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: Two trades
– 0.5% VLSFO: No trade
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Mrigank Dhaniwala)