Spot differentials for the fuel oil market were rangebound in Asia on Tuesday, with trading momentum largely thin on the whole.

The cash differential for very low sulphur fuel oil (VLSFO) remained in a premium amid some signs of recovery in recent sessions, while high sulphur fuel oil (HSFO) held in discounts amid an absence of fresh drivers.

Amid the stronger performance in VLSFO, the hi-five fuel oil spread widened to over $90 a ton as of Tuesday, based on data compiled by LSEG.

Margins traded lower day-on-day despite a drop in crude prices. VLSFO crack closed at a premium of $9.20 a barrel, while HSFO crack closed at a discount of about $$5 a barrel.

As for tenders, Taiwan’s CPC offered catalyst fractionator bottoms for loading in September, based on a notice from its website. The tender closes on Tuesday with validity to Thursday.

REFINERY UPDATES
– Ukraine stepped up drone attacks on Russian oil refineries and exporting infrastructure.
– BP’s 440,000-bpd refinery in Whiting, Indiana, is expected to be fully operational in the next 24 to 48 hours, industry monitor IIR said on Monday.

OTHER NEWS
– Oil prices fell on Tuesday after surging nearly 2% in the previous session as traders monitor developments surrounding the war in Ukraine and potential disruption to Russian fuel supplies.
– China’s state-run Sinochem Group will sell another two bankrupt refineries in eastern Shandong province to local refiners for much less than they are valued via auctions that closed on Friday, according to seven trade sources and auction documents.
– India’s state-run Oil and Natural Gas Corp is planning to set up a trading unit for the crude and refined fuels of its group companies, a top executive at ONGC Videsh said at an industry event.
– Work is underway at three new wells in the Zohr gas field in the Mediterranean in the current financial year, Egypt’s petroleum ministry said on Tuesday.

WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters