Spot premium for high sulphur fuel oil (HSFO) posted further gains on Monday, while very low sulphur fuel oil (VLSFO) premium continued to soften from the previous week.
The 380-cst HSFO complex has received a boost in recent sessions, led by bullish buying in the derivatives market. Cracks remained in premiums to Brent quotes (FO380BRTCKMc1), while retaining narrow discounts to Dubai.
In contrast, VLSFO remained under pressure due to weak refuelling demand from the ship bunkering sector, with spot offers easing day-on-day.
The hi-5, which reflects the premium of VLSFO over 380-HSFO, remained stuck below $70 a metric ton at the prompt contract and held at multi-year lows, based on LSEG data.
Meanwhile, India’s BPCL offered 20,000 tons of HSFO for loading in March, based on data from trade sources. The tender closes on Tuesday.
OTHER NEWS
– Oil prices slipped in Asia on Monday, extending losses from last week, on the prospect of a resumption of exports from Kurdistan’s oilfields, while investors awaited clarity on talks to resolve the war in Ukraine.
– Iraq will export 185,000 barrels per day from Kurdistan’s oilfields through the Iraq-Turkey pipeline once the oil shipments resume, an Iraqi oil ministry official said.
– Myanmar and its close ally Russia signed a memorandum on investment cooperation in a special economic zone in Dawei, including construction of a port and an oil refinery, Russia’s Ministry of Economic Development said on Sunday.
– Italian oil services company Saipem said on Sunday that it will merge with Norwegian rival Subsea 7 in a deal valued at about $4.63 billion.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters