Refining margins for very low sulphur fuel oil (VLSFO) posted a weekly decline as of Friday, with the market underpinned by ample prompt supply, according to trade sources.

Front-month crack for VLSFO logged a drop of more than 5% from last week, closing at a premium of about $10.50 per barrel on Friday, based on LSEG data.

Backwardation spreads also narrowed for the prompt months, with more selling interest emerging in the week, said sources.

On the bunkering front, premiums for VLSFO marine fuel delivered at the port of Singapore remain capped at about $10 per metric ton to cargo quotes, as competitive offers persisted.

Meanwhile, Taiwan’s Formosa offered 40,000 tons of main column bottoms (MCB) for loading in early August via a tender that closes on Friday.

INVENTORY DATA

– ARA inventories STK-FO-ARA dipped 1.3% to 1.40 million tons in the week to July 11, extending to a 13-week low, data from Dutch consultancy Insights Global showed.

OTHER NEWS

– Oil prices inched up on Friday amid signs of easing inflationary pressures in the United States, the world’s biggest oil consumer, although Brent crude was set for a weekly decline.

– Russia’s Federal Antimonopoly Agency wants to reinstate a gasoline export ban from Aug. 1 to help meet fuel demand during harvesting season and safeguard price stability, the agency said on Friday.

– About 1 million homes and businesses in Texas remained without power on Thursday, four days after Hurricane Beryl lashed the state with fierce winds and flooding, sparking frustration among companies, officials and residents facing extreme heat.

– Germany has awarded a tender to buy at least 259,000 metric tons of green ammonia between 2027 and 2033 to UAE-based Fertiglobe, marking the first in a round of global tenders to import green hydrogen derivatives needed for decarbonisation.

WINDOW TRADES

– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Tasim Zahid)