Fuel oil benchmarks were broadly stable in Asia on Friday, with cash premiums and crack spreads rangebound through the week.

The high-sulphur (HSFO) market largely retained support amid a seasonally strong period, though expectations of more upcoming arrivals later this month capped gains.

Cracks for 380-cst HSFO were stable between discounts of $6 to $6.50 a barrel this week, while cash premiums held at about $12 a metric ton.

Meanwhile, the low-sulphur (VLSFO) market recovered slightly on Friday, though some bearish pressure weighed on sentiment as the wider supply pool remained ample while spot bunkering demand was lukewarm.

VLSFO cracks closed higher at about $9 a barrel on Friday, while cash premiums also firmed slightly.

INVENTORY DATA

– ARA inventories inched 0.9% lower at 1.57 million tons in the week to June 13, data from Dutch consultancy Insights Global showed.

OTHER NEWS

– Oil eased on Friday as markets evaluated the impact of U.S. interest rates staying higher for longer than anticipated, but crude benchmarks headed for their best week in more than two months after solid projections for crude and fuel demand.

– OPEC does not see a peak in oil demand in its long-term forecast and expects demand to grow to 116 million barrels a day by 2045, and may be higher, the secretary general said.

– Ukraine signed on Thursday its first liquefied natural gas deal with a U.S. company to help avert an energy supply crunch amid a war with its bigger neighbour Russia.

– Singapore is offering refiners and petrochemical companies rebates of up to 76% for its planned carbon tax for 2024 and 2025 to help them ease cost stress and remain competitive versus rivals elsewhere, four sources familiar with the matter said.

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 Sohini Goswami)