Spot premiums for fuel oil were rangebound in Asia on Monday, while market sources watched developments in the Middle East.
There were no signs of supply disruption yet, sources said, though they cautioned that the situation is volatile.
Singapore cash premium for high sulphur fuel oil (HSFO) remained above $10 a metric ton, while very low sulphur fuel oil (VLSFO) held near $7.50 a metric ton.
Cracks retained a volatile ride amid the swings in crude prices, with HSFO margins climbing back into premiums, closing near $2 a barrel, LSEG data showed.
VLSFO cracks, were still largely rangebound near premiums of $11 a barrel, even as the intraday trading range was wide.
BUNKER DATA
Marine fuel sales in Singapore recovered to hit 16-month highs in May, official data showed on Monday, as more vessels arrived in Singapore for container movements and bunkering.
Volumes at the world’s largest bunker hub for ships totalled 4.88 million metric tons, up 10.8% month-on-month and 1.1% higher year-on-year, according to data from the Maritime and Port Authority of Singapore.
OTHER NEWS
– Oil prices edged down on Monday, after surging 7% on Friday, as renewed military strikes by Israel and Iran over the weekend left oil production and export facilities unaffected.
– The costs of chartering tankers to move oil from the Middle East to Asia have climbed and ship bookings have slowed as the Israel-Iran conflict fuels worries of potential disruptions, industry sources told Reuters on Monday.
– U.N. nuclear watchdog chief Rafael Grossi provided an update on Monday on the situation at Iran’s nuclear facilities after Israel launched military strikes and said there was no sign of further damage at the Natanz or Fordow enrichment sites.
– All the facilities of energy services firm Baker Hughes are operating normally in the Middle East, chief executive Lorenzo Simonelli told Reuters on the sidelines of the Energy Asia conference on Monday.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: Two trades
– 0.5% VLSFO: Two trades
Source: Reuters