Asia’s very low sulphur fuel oil (VLSFO) market softened on Wednesday, while Kuwait’s Al Zour refinery offered VLSFO for loading between October and December.
The refiner offered 130,000 tons of VLSFO for loading each month during the period, via a tender that closes on Wednesday, trade sources said.
Amid signs of easing supply tightness, Singapore VLSFO traded at a lower cash premium for dates in the later part of October, while front-month cracks closed lower at premiums of $14.90 a barrel.
The hi-5 fuel oil spread narrowed on Wednesday after widening for four straight sessions, closing at $156.35 a metric ton, showed LSEG data.
Benchmarks for high sulphur fuel oil remained largely stable to softer, with cracks for 380-cst HSFO FO380DUBCKMc1 edging down to discounts of about $9.75 a barrel.
Separately, Taiwan’s CPC is seeking 40,000 tons of LSFO for delivery in November. The tender closes on Wednesday and is valid until Friday, based on its website.
INVENTORY DATA
– Fujairah heavy fuel inventories fell 12.4% to 8.46 million barrels (1.33 million tons) in the week to Oct. 23, slipping to a three-week low, based on latest FOIZ data published by S&P Global Commodity Insights.
OTHER NEWS
– Oil prices were little changed on Wednesday as investors reassessed the ability of China’s stimulus plans to boost its economy, while declining U.S. crude oil and fuel stockpiles provided support.
– OPEC raised its forecasts for world oil demand for the medium and long term in an annual outlook, citing growth led by India, Africa and the Middle East and a slower shift to electric vehicles and cleaner fuels.
– About 16% of crude production and 11% of natural gas output in the U.S. Gulf of Mexico were shut in response to Tropical Storm Helene, the Bureau of Safety and Environmental Enforcement said on Tuesday.
– Global energy major BP said on Wednesday it is holding a board meeting in India this week, as it scouts for more opportunities in the country.
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 Shailesh Kuber)