Spot fuel oil differentials edged marginally higher in Asia on Thursday, while onshore inventories in Singapore extended declines.
High sulphur fuel oil (HSFO) cash differential traded into narrower discounts of $1 a metric ton to cargo quotes, though market sources said that supply remained plentifully available.
Meanwhile, very low sulphur fuel oil (VLSFO) inched higher after a stronger bid emerged for June loading dates, lifting cash differential above premiums of $7 a metric ton.
Fuel oil stockpiles at Singapore hit their lowest in seven weeks, as exports jumped and imports fell, data showed on Thursday.
Despite the weekly decline in stockpiles, market sources noted that Asia continues to receive strong volumes of high-sulphur fuel oil from the Middle East.
Cracks were elevated on Thursday. June 380-cst HSFO cracks (FO380BRTCKMc1) closed higher at premiums above $2 a barrel, while VLSFO cracks (LFO05SGBRTCMc1) rose to premiums of about $12.50 a barrel.
INVENTORY DATA
– Singapore onshore fuel oil stockpiles (STKRS-SIN) were at 20.54 million barrels (about 3.24 million metric tons) in the week to May 7, falling 8.6% week-on-week, showed Enterprise Singapore data.
– Fujairah heavy fuel inventories (FUJHD04) eased 2.6% to 10.46 million barrels (1.65 million tons) in the week to May 5, showed FOIZ data published by S&P Global Commodity Insights.
OTHER NEWS
– Oil prices rose on Thursday, supported by hopes of a breakthrough in looming trade talks between the United States and China, the world’s two largest oil consumers.
– Indonesia’s Karimun terminal has ramped up imports of Russian oil products to become a key transshipment hub where traders store cargoes whose countries of origin are rebranded before re-export, based on sources and ship-tracking data.
– Dutch and German oil refineries have snapped up all four cargoes of Chadian Doba crude in April to profit from soaring demand for cleaner marine fuel in Europe from shipping companies, including Maersk, according to shipping data and trade sources.
– Mexico’s state energy firm Pemex said on Wednesday evening that it had addressed two leaks in a pipeline that transports oil from its Akal-C platform to the Dos Bocas Maritime Terminal in the southern state of Tabasco.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: Two trades
– 0.5% VLSFO: No trade
Source: Reuters