Asia high sulphur fuel oil (HSFO) cracks took a breather from recent record highs, but held steadily in premiums over crude quotes at the prompt months.
Singapore 380-cst HSFO/Dubai crack for June (FO380DUBCKMc1) closed lower at a premium near $3.70 a barrel, while the HSFO/Brent crack (FO380BRTCKMc1) closed at $2.50 a barrel.
Analysts at consultancy FGE said that the HSFO forward curve is overpriced for the summer period.
Meanwhile, fuel oil traders said the market fundamentals have not changed significantly, with support mainly coming from pricing agendas.
Cash differentials for both 180-cst and 380-cst HSFO closed at stronger premiums to Singapore quotes, while very low sulphur fuel oil (VLSFO) differentials were rangebound near $10 per metric ton.
Broader market trade was largely thin, though India’s HPCL offered more HSFO for June in a recent tender. The cargo of 33,000 tons is scheduled to load between June 7 and 9 via Mumbai port.
OTHER NEWS
– Oil prices recorded limited gains on Monday after U.S. President Donald Trump extended a deadline for trade talks with the European Union, easing concerns about U.S. tariffs on the bloc that could hurt the global economy.
– Saudi state oil giant Aramco is exploring potential asset sales to free up funds, two people with knowledge of the matter said, as it pursues an international expansion and weathers lower crude prices.
– Authorities in the southern Indian state of Kerala were scrambling to contain an oil spill on Monday after a container vessel sank, leaking fuel into the Arabian Sea and releasing 100 cargo containers into the water.
– Egypt is in talks with energy firms and trading houses to buy 40-60 cargoes of liquefied natural gas amid a worsening energy crunch ahead of peak summer demand, three sources aware of the matter told Reuters.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters