Spot fuel oil premiums dipped in Asia on Thursday, though bunker prices for high sulphur fuel oil (HSFO) continued to retain support, market sources said.
Lower offers emerged for 380-cst high sulphur fuel oil, bringing the cargo cash differential below $5 a metric ton. However, delivered bunker fuel premiums remained strong on tight prompt supply.
Delivery dates in the first half of October could command premiums of over $60 a metric ton to Singapore cargo quotes this week, the highest in 2024 so far for a delivered pricing basis, according to data from the market sources.
Offers for dates in the second half of October largely ranged between $25 to $35 a metric ton, the sources said.
As for the low-sulphur market, delivered bunker premiums have trended stable to lower, while cargo premiums also fell.
Meanwhile, refining margins for fuel oil were little changed on Thursday. Cracks for 380-cst HSFO closed at discounts of about $9.15 a barrel, while VLSFO cracks closed at premiums of about $12.75 a barrel.
INVENTORY DATA
– Singapore onshore fuel oil stockpiles STKRS-SIN were at 16.76 million barrels (about 2.64 million metric tons) in the week to Oct. 2, recovering this week after sliding to about six-year lows last week, Enterprise Singapore data showed.
– Oil prices rose on Thursday as the prospect of a widening Middle East conflict that could disrupt crude oil flows from the region overshadowed a stronger global supply outlook.
– A meeting of top OPEC+ ministers has kept oil output policy unchanged including a plan to start raising output from December, while also emphasising the need for some members to make further cuts to compensate for overproduction.
– French oil major TotalEnergies told investors on Wednesday it would focus on low-cost upstream production and signing oil-linked gas contracts to operate profitably and reward shareholders through 2030 as prices fall.
– Long lines of container ships queued up outside major U.S. ports on Thursday as the biggest dockworker strike in nearly half a century entered its third day preventing unloading and threatening shortages of everything from bananas to auto parts.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Vijay Kishore)