Asia’s spot differential for 380-cst high sulphur fuel oil (HSFO) sank into a discount on Wednesday in recent volatility, following a short-lived session in a premium.
Offers for Singapore cash differential softened back into discounts, with a trade emerging for June loading dates. Meanwhile, 380-cst HSFO cracks also retreated on Wednesday, following a spike seen in the previous day.
In contrast, very low sulphur fuel oil (VLSFO) retained strength for both physical and derivative markets despite a lack of concrete bullish drivers, market sources said. VLSFO cracks for June clung near to premiums of $13 a barrel, LSEG data showed.
As for tenders, Taiwan’s Formosa recently offered 40,000 tons of main column bottoms for loading between June 17 and 19, sources said.
BUNKER SALES
– Singapore bunker volumes totalled 4.40 million metric tons, down 1.4% month-on-month but higher by 4.0% year-on-year, data from Maritime and Port Authority of Singapore showed.
Trade sources in Singapore said that demand was average in April and in May so far, with premiums holding steady to slightly higher for bunker fuel delivered.
INVENTORY DATA
– Fujairah heavy fuel inventories (FUJHD04) fell 10.7% to 9.34 million barrels (1.47 million tons) in the week to May 12, showed FOIZ data published by S&P Global Commodity Insights.
OTHER NEWS
– Oil prices slipped on Wednesday as traders eyed a potential jump in U.S. crude inventories, awaiting official weekly inventory data later in the day.
– The U.S. Treasury Department on Tuesday imposed sanctions on more than 20 companies in a network that it said has long sent Iranian oil to China, days after negotiators from Iran and the United States concluded a fourth round of nuclear talks.
– Nigeria’s Dangote oil refinery has cancelled June maintenance at its 204,000 barrels per day gasoline-making unit as it completed planned works during an unplanned shutdown from April 7 to May 11, according to industry monitor IIR.
– President Donald Trump kicked off his trip to the Gulf on Tuesday with a surprise announcement that the United States will lift long-standing sanctions on Syria, and a $600 billion commitment from Saudi Arabia to invest in the U.S.
WINDOW TRADES
– 180-cst HSFO: One trade
– 380-cst HSFO: One trade
– 0.5% VLSFO: No trade
Source: Reuters