Benchmarks for high sulphur fuel oil (HSFO) eased on Monday, while more residual fuel tenders were underway in the spot market.
Backwardation timespreads for HSFO narrowed from last week, while 380-cst cash premiums were pegged below $5 per metric ton amid competitive offers for prompt loading dates.
Cracks for 380-cst HSFO FO380DUBCKMc1 held their ground, closing at discounts of about $5 per barrel.
In spot residual fuel tenders, Taiwan’s CPC offered catalytic fractionator bottoms for loading between end July and early August, while Indonesia’s Pertamina offered decant oil for loading at end August, based on industry sources and shipping records.
On the low-sulphur (VLSFO) patch, benchmarks were broadly stable from last week. Front-month cracks LFO05SGDUBCMc1 were at premiums of $10.50 to $11 per barrel on Monday, based on LSEG data.
BUNKER SALES
Singapore bunker sales in the first half of 2024 totalled 27.2 million tons, climbing 8.5% from the same period last year.
Shipping disruptions in the Red Sea boosted global bunkering demand, though demand slowed month-on-month in June, industry sources said.
June bunker sales totalled 4.27 million tons, sliding 11.4% from May, while container throughput eased 5.1% to 3.35 million TEUs, MPA data showed.
The slower monthly sales could be driven by regional diversions to China’s Zhoushan which was offering fuel at lower prices than Singapore in June, according to sources.
OTHER NEWS
– Oil held its ground on Monday as downward pressure from a stronger U.S. dollar and concern about demand in top importer China offset support from political uncertainty in the United States and the Middle East.
– Asia’s crude oil imports from Canada’s newly expanded Trans Mountain pipeline will rise in September as major refiners in Japan and South Korea and a refinery in Brunei have bought their first cargoes alongside China, multiple trade sources said.
– Nigerian state-owned oil firm NNPC shareholding in Dangote refinery has been whittled down to 7.2% from 20% after failing to pay the balance of funding owed, Aliko Dangote, the refinery’s owner told the BusinessDay newspaper.
– Russia has sent ultra-low sulphur diesel from its ports for storage in the regional hub of Singapore and in West Africa, traders and shipping data show, as ample supply has slowed demand.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: One trade
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Eileen Soreng)