Asia’s very low sulphur fuel oil (VLSFO) market eased on Monday following a small rally last week, while high sulphur fuel oil (HSFO) was little changed.
The Singapore cargo cash premium for VLSFO MFO05-SIN-DIF fell to $6.70 a metric ton on Monday, though some market sources remained optimistic about Red Sea events supporting bunker demand.
Meanwhile, 380-cst HSFO cargo premium held steady at $4.25 a ton against a backdrop of thin activity.
In tenders, Taiwan’s CPC offered catalytic fractionator bottom for February loading. The tender closes on Monday and is valid until Wednesday.
CHINA DATA
China’s exports of low-sulphur marine fuels last year rose 3.2% from 2022, data from the General Administration of Customs showed on Saturday.
Exports of the marine fuel were at 18.63 million metric tons, the customs data showed. The rise in exports tracked continued growth in refuelling demand at China’s largest bunker port of Zhoushan.
Meanwhile, total fuel oil imports rose 83.5% to a decade-high of 22.44 million tons in 2023, data showed.
OTHER NEWS
– Oil prices lost more ground on Monday as economic headwinds pressured the global oil demand outlook and offset geopolitical concerns in the Middle East and an attack on a Russian fuel export terminal over the weekend.
– Russian energy company Novatek on Sunday was forced to suspend some operations at Ust-Luga, a massive Baltic Sea fuel export terminal and processing complex, due to a fire started by what Ukrainian media said was a drone attack.
– Saudi Basic Industries Corp will go ahead with building a petrochemical complex in southeastern China’s Fujian province, the company said in an exchange filing on Sunday, shoring up Saudi ties with China, the world’s top oil importer.
– Qatar Energy within weeks could sign a long-term deal to provide liquefied natural gas to Indian buyers on cheaper and more flexible terms than existing contracts, trade sources said, as India seeks to meet a goal to increase the fuel’s use.
WINDOW TRADES O/AS
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: Two trades
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Tasim Zahid)