Spot fuel oil benchmarks dipped on Tuesday, while the market kept an eye on ample supply into the coming weeks.
Cash premium for Singapore very low sulphur fuel oil (VLSFO) dropped below $9 a metric ton with offers softening. Meanwhile, 380-cst high sulphur fuel oil (HSFO) traded lower to $10 a ton, though some bids held their ground.
Total incoming fuel oil supplies to Asia are expected to breach 6 million tons this month, calculations based on LSEG ship-tracking data showed Tuesday, with strong inflows led by a sustained recovery in arbitrage barrels, including from Russia.
This compared lower versus a volume of more than 7 million tons last month, though it remained above an average of a typical 5.5 million tons per month.
In the downstream bunker market, premiums also softened for delivered marine fuel at Singapore. The bunker premiums dipped towards $15 a ton this week, compared to about $20 last week, based on data from trade sources.
REFINERY UPDATES
– The naphtha reformer of Venezuela’s second-largest refinery, the 310,000-barrel-per-day Cardon, has been halted for maintenance and repairs following an equipment malfunction last week, four sources close to operations said.
– The gasoline-producing fluidic catalytic cracker (FCC) at Motiva Enterprises’ 626,000-barrel-per-day (bpd) Port Arthur, Texas refinery returned to normal operation on Monday after a malfunction, said people familiar with plant operations.
OTHER NEWS
– Oil prices were little changed on Tuesday, awaiting further price direction from OPEC’s monthly report, with investor disappointment over China’s latest stimulus plan and oversupply concerns keeping buying interest at bay.
– U.S. exports of crude oil to China have rebounded in October from their lowest levels since 2020 amid weak Chinese fuel demand and refinery profits, but the outlook for growth in exports is glum, according to ship tracking service Kpler.
– The Japanese government is planning to continue gasoline subsidies next year with phased-in reductions, the Nikkei newspaper said on Tuesday.
– A Dutch court on Tuesday accepted Shell’s appeal against a landmark climate ruling, dismissing the order for the oil and gas company to sharply reduce emissions.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: One trade
– 0.5% VLSFO: One trade
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Vijay Kishore)