Asia spot differentials for very low sulphur fuel oil (VLSFO) continued to soften on Thursday, while onshore inventories at Singapore extended gains despite a fall in net imports.

Bunker demand has been largely tepid within the region, according to several trade sources, which limited inventory drawdowns. Onshore stockpiles were at their highest in four weeks, based on Enterprise Singapore.

Spot premiums for very low sulphur fuel oil (VLSFO) dipped below $9 a metric ton, with offers easing from the previous day.

Meanwhile, 380-cst high sulphur fuel oil (HSFO) premiums were pegged at about $7 a metric ton, broadly stable from the last session in thin activity.

Refining margins for HSFO remained strong, with cracks closing above premiums of $3 a barrel, while VLSFO cracks softened below $12 a barrel.

INVENTORY DATA

– Singapore residual fuel inventories were at 22.34 million barrels (about 3.52 million metric tons) in the week to May 28, up 3.9% week-on-week, Enterprise Singapore data showed.

OTHER NEWS

– Oil prices rose on Thursday after a U.S. court blocked most of President Donald Trump’s tariffs, while the market was watching out for potential new U.S. sanctions curbing Russian crude flows and an OPEC+ decision on hiking July output.
– French oil major TotalEnergies said on Thursday it agreed to sell its 12.5% stake in the Bonga oilfield offshore Nigeria to Shell SHEL.L, the field’s operator, for $510 million.

– Libya’s eastern-based government said on Wednesday it may announce a force majeure on oil fields and ports citing “repeated assaults on the National Oil Corporation.

– Chevron will lay off nearly 800 employees in Texas, according to a notice on Wednesday to the Texas Workforce Commission, part of the U.S. oil producer’s plan to cut up to 20% of its global workforce by the end of 2026.

WINDOW TRADES

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