Strength in the Asia high sulphur fuel oil (HSFO) market eased further on Wednesday as the market eyed heavy supply.
More cargoes from the Middle East are expected to land in Asia this month as an earlier rally in HSFO prices drove more barrels to the region, trade sources said.
Singapore’s 380-cst HSFO cash premium dropped for a fifth session on Wednesday, slipping below $16 a metric ton.
Apart from Middle Eastern barrels, cargoes from regional refiners also added to supply prospects. Thailand’s PTT and India’s HPCL offered two HSFO cargoes each for April loading, based on sources.
Separately, Indonesia’s Pertamina offered more marine fuel oil for April, while Malaysia’s Prefchem offered a cargo of atmospheric residue. The tenders closed on Wednesday.
The very low sulphur fuel oil (VLSFO) market also remained at downside risk due to lacklustre refuelling demand.
Marine fuel sales at top bunker ports have shown signs of slowing as the shipping sector grapples with uncertainty over geopolitics and the impact of escalating tariffs on global trade.
Meanwhile, refining margins for VLSFO (LFO05SGBRTCMc1) dipped below $8 a barrel, while 380-cst HSFO cracks (FO380BRTCKMc1) closed at discounts near $2.50 a barrel, LSEG data showed.
INVENTORY DATA
– Fujairah heavy fuel inventories (FUJHD04) rose 13.2% to 11.04 million barrels (1.74 million tons) in the week to March 17, showed FOIZ data published by S&P Global Commodity Insights.
OTHER NEWS
– Oil prices fell on Wednesday after Russia agreed to U.S. President Donald Trump’s proposal that Moscow and Kyiv stop attacking each other’s energy infrastructure temporarily, which could lead to more Russian oil entering global markets.
– Brent crude futures flipped to a discount against Dubai swaps on Wednesday, the first time since November 2023, LSEG data showed.
– Iraqi naval forces have seized an unidentified ship in Iraqi territorial waters in the Gulf suspected of smuggling fuel, the naval forces said in a statement.
– Mexican state energy company Pemex is in talks with companies owned by billionaire investor Carlos Slim about an investment in the country’s most important natural gas field, Ixachi, President Claudia Sheinbaum said.
Source: Reuters