Spot differentials for key fuel oil grades held in discounts on Thursday, while latest data showed that stockpiles jumped at Singapore.
Onshore stockpiles climbed to more than 27 million barrels, a level well above average, based on Enterprise Singapore data.
Inventories averaged at 20 million barrels a week last year, and were at about 22 million barrels a week in this year so far.
Incoming supplies from various regions remained high, including from Brazil, Saudi Arabia and Indonesia.
Singapore cash differential for 380-cst high sulphur fuel oil (HSFO) was pegged at a narrower discount of $1 a metric ton, while very low sulphur fuel oil (VLSFO) softened to a discount of $1.35 a ton.
Cracks traded slightly higher than the previous day’s close, after crude oil continued to extend declines.
Singapore’s October VLSFO crack closed at a premium near $8.20 a barrel, while 380-cst HSFO crack edged higher to a discount of $5.60 a barrel, data compiled by LSEG showed.
INVENTORY DATA
– Singapore residual fuel inventories gained 10.8% to 27.4 million barrels (4.31 million metric tons) in the week to Sept. 3, according to Enterprise Singapore data.
OTHER NEWS
– Oil prices declined by 1% on Thursday, as investors and traders looked ahead to a weekend meeting of OPEC+ where producers are expected to consider another increase in output targets.
– Venezuela’s oil exports surpassed 900,000 barrels per day in August, the highest level since November, after energy producer Chevron received a license that has allowed the OPEC country’s crude to return to the U.S. market after a four-month pause, shipping data showed.
– Russia will deliver oil to Brunei via the Northern Sea Route for the first time this September, expanding its export reach through the strategic Arctic passage, two sources familiar with the shipping data told Reuters.
– U.S. oil and gas producer ConocoPhillips will cut 20-25% of its workforce as part of a broad restructuring, a company spokesperson said on Wednesday, after five sources told Reuters that CEO Ryan Lance detailed the plans in a morning video message.
Source: Reuters