Asia’s cash premiums for both high-sulphur and low-sulphur fuel oil mostly held their ground on Wednesday, with market expectations little changed from the previous trading session.
Bullishness in the 380-cst high-sulphur fuel oil (HSFO) markets remained, as arrivals from the Middle East are still likely to stay minimal for December amid planned maintenance there, one source said.
Cash premiums for 380-cst HSFO closed at $13 per metric ton.
In the very-low sulphur fuel oil (VLSFO) markets, trader expectations were still present for sufficient supplies in Singapore, given that some off-spec crude cargoes from the Africas region were adding on to the volumes.
However, the consistently elevated cost levels of some blending components in the market and positivity on Chinese buying for their own bunkering requirements, given the lack of export quotas, could minimise any weakness in the market.
Cash premiums for VLSFO remained at $10.50 per metric ton, with a window deal remaining at similar levels.
On the refiner spot sales front, India’s Hindustan Petroleum offered a 33,000-ton 300-350 cst HSFO cargo loading Nov. 28-30 via sales tender that closes on Nov. 7.
INVENTORIES
– U.S. crude oil stocks rose while fuel inventories fell last week, market sources said, citing American Petroleum Institute figures on Tuesday. EIA/S
– Residual fuel stockpiles at Fujairah Oil Industry Zone fell to a three-week low of 8.325 million barrels for the week ended Nov. 4, according to industry information service S&P Global Commodity Insights.
NEWS
– Discounts on Iranian crude oil sold to China are at their tightest in around five years as lower exports drive up prices amid concerns that Middle East tensions may disrupt supply, trading sources said.
– Iraq’s cabinet said on Tuesday it had ordered the semi-autonomous Kurdish region to immediately transfer its oil output to the country’s state-run firm SOMO.
– Oil and gas producers began shutting in U.S. Gulf of Mexico output and pulling workers off platforms on Tuesday ahead of a late hurricane season storm threatening offshore fields.
WINDOW TRADES
– 180-cst HSFO: No deals
– 380-cst HSFO: No deals
– 0.5% VLSFO: One deal
Source: Reuters (Reporting by Trixie Yap; Editing by Tasim Zahid)