Spot premium for very low sulphur fuel oil (VLSFO) fell on Wednesday, with November offers easing from the previous session, while more supply arrivals to Asia loomed.
The VLSFO cash premium was pegged lower on Wednesday after rising to more than a two-week high on Tuesday, as offers softened for loading dates in early November.
Meanwhile, cash premiums for high sulphur fuel oil (HSFO) were largely stable, though market backwardation widened at the prompt trading months.
Refining cracks for fuel oil closed higher on Wednesday following declines in crude prices. VLSFO cracks for November LFO05SGDUBCMc1 closed above premiums of $14 a barrel, while 380-cst HSFO cracks FO380DUBCKMc1 closed at discounts of about $6 a barrel, based on LSEG data.
In spot tenders, Indonesia’s Pertamina was selling more marine fuel for November on top of its earlier offers, based on shipping records from industry sources.
The company offered 100,000 barrels of low-sulphur marine fuel oil for loading from Sungai Pakning between Nov. 7 and 8, via a tender that closes on Wednesday.
FUJAIRAH DATA
– Marine fuel sales at the United Arab Emirates’ Fujairah dipped to a three-month low in September, latest data showed, largely led by a sharp drop in high-sulphur marine fuel volumes.
– Fujairah heavy fuel inventories FUJHD04 gained 16.6% to 8.39 million barrels (1.32 million tons) in the week to Oct. 14, FOIZ data published by S&P Global Commodity Insights showed.
OTHER NEWS
– Oil prices inched higher on Wednesday amid uncertainty over what may happen next in the Middle East conflict, after demand concerns knocked the market to its lowest since early October in the previous session.
– A resumption of Libyan crude output after a political crisis over the central bank slashed the OPEC member’s exports to a four-year low, has led to a surplus in crude supplies in Europe, forcing competing sellers to cut their prices, trading sources and analysts say.
– Oil shipments from Russian ports to China via the Arctic Northern Sea Route have risen by a quarter to a record 12.5 million barrels (about 1.7 million metric tons) during its navigable period this year, preliminary data from energy consultancy Kpler and LSEG showed.
– Freight trade is ramping up considerably in the run-up to the U.S. presidential election amid fears over rising protectionism in the world’s biggest economy, the head of German logistics company said in a media interview published on Wednesday.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Eileen Soreng)