The Hi-5 fuel oil spread, which is the premium of very-low sulphur fuel oil (VLSFO) over high-sulphur fuel oil (HSFO), narrowed by nearly 10% from last week, data showed on Friday.
The August Hi-5 spread crunched to $85.25 a metric ton at the Asia close (0830 GMT) on Friday, Refinitiv data showed.
The VLSFO market has softened steadily since end-June amid a bearish supply outlook, while the HSFO market retained its strength in contrast.
The cash differential for 0.5% was pegged at a discount of $2 a metric ton on Friday, while front-month refining margin was at a premium of $6.47 a barrel by 0830 GMT.
Meanwhile, the 380-cst HSFO cash differential FO380-SIN-DIF held steady at a premium of $12.75 a ton, while product margin climbed to a discount of $6.95 a barrel.
In tenders, Indonesia’s Pertamina had offered 200,000 barrels of heavy vacuum residue for loading from Cilacap between Aug. 29 and 30. The tender is expected to be awarded early next week, trade sources said.
ARA INVENTORIES
Inventories at ARA fell 9.3% to 1.26 million tons in the week to July 20, latest data from Dutch consultancy Insights Global showed.
OTHER NEWS
– Brent oil prices rose on Friday as markets assessed the prospect of economic stimulus in China after weak economic data, falling inventories in the U.S., and supply cuts from key producers.
– Russia is not ruling out introducing export quotas on oil products to stabilise gasoline prices, Russian Deputy Prime Minister Alexander Novak said on Friday, according to state media, as gasoline wholesale prices hit an all-time high.
– Japan’s top liquefied natural gas buyer JERA will invest $300 million in green technology-focused start-ups through a newly created in-house unit, it said on Friday, as part of the country’s efforts to reach carbon neutrality by 2050.
– Russia’s successor to McDonald’s has teamed up with energy company Gazprom Neft to fuel marine vessels with biofuel produced using waste cooking oil an effort to lower their carbon footprints, the companies said on Thursday.
WINDOW TRADES O/AS
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: One trade
Source: Reuters