Asia’s very low sulphur fuel oil (VLSFO) market slipped further on Thursday, while inventories at Singapore built to a two-month high, latest official data showed.
Stockpiling grew amid expectations of tighter supply into December, with less finished products slated to land in Asia.
Uncertainty continued to linger around supplies out of key exporter Kuwait to Asia, following recent operational issues at the Kuwait Al Zour refinery.
There were no inflows from Kuwait to Singapore onshore tanks in the week to Nov. 22, based on Enterprise Singapore data.
The 0.5% VLSFO cash premium MFO05-SIN-DIF for 0.5% VLSFO eased to $23 a metric ton, while refining margin LFO05SGDUBCMc1 softened to a premium of $13.27 a barrel.
In tenders, Taiwan’s Formosa offered 40,000 tons of VLSFO for loading from Mailiao between Dec. 15 and 17. The tender closes on Friday with same-day validity.
SINGAPORE INVENTORIES O/SING1
Onshore fuel oil stocks STKRS-SIN edged 14.9% higher at 20.12 million barrels (3.17 million metric tons) in the week to Nov. 22, the latest data from Enterprise Singapore showed.
OTHER NEWS
– Oil prices fell on Thursday after OPEC+ postponed a ministerial meeting, leading to speculation that producers might cut output less than earlier anticipated.
– Russia’s oil shipments from its western ports may fall in December amid record refinery runs planned for next month and a recent lifting of the state’s fuel export ban, traders said.
– The suspension of U.S. sanctions on Venezuelan oil has rattled its biggest customers, China’s independent refiners, who are now holding off on making new purchases amid wide discrepancies in offer prices, trading sources say.
– India plans to ask state-run Oil and Natural Gas Corp to consider launching a rights issue to help fund green projects at refining arm Hindustan Petroleum Corp, two sources said, an exercise that could raise about $1.9 billion.
WINDOW TRADES O/AS
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: One trade
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Mrigank Dhaniwala)