Refining cracks for both low-sulphur and high-sulphur fuel oil logged weekly increases as of Friday Asia close, while spot premiums also firmed week-on-week.
The markets remained supported by some lingering tightness for prompt dates, though trade sources said supply replenishment is underway.
Cash premium for 380-cst high sulphur fuel oil (HSFO) was pegged at $6.05 a metric ton, while 0.5% low sulphur fuel oil (VLSFO) was pegged at $8.55 a metric ton on Friday.
Meanwhile, ex-wharf bunker premiums eased in the week, though delivered bunker premiums remained rangebound.
Cracks for 380-cst HSFO FO380DUBCKMc1 closed at discounts of $7.15 a barrel, up 8% from last week, while VLSFO cracks LFO05SGDUBCMc1 closed at premiums of about $14 a barrel, climbing 6% over the same period, LSEG data showed.
INVENTORY DATA
– ARA inventories STK-FO-ARA fell 10% at 1.24 million tons in the week to Oct. 10, data from Dutch consultancy Insights Global showed.
OTHER NEWS
– Oil retreated on Friday after settling higher the previous day, but prices remained set for a second straight weekly gain as investors weighed the impact of hurricane damage on U.S. demand against any broad supply disruption if Israel attacks Iranian oil sites. O/R
– Gulf states are lobbying Washington to stop Israel from attacking Iran’s oil sites because they are concerned their own oil facilities could come under fire from Tehran’s proxies if the conflict escalates, three Gulf sources told Reuters.
– Mexico’s state-owned Pemex’s new oil refinery is processing crude at about 80% of its capacity, the country’s president said on Thursday, an amount that marks a big jump from the company’s latest official data.
– Marine fuel trading house KPI OceanConnect is looking to offer biofuel for bunkering at more ports in view of higher demand as FuelEU regulations kick in next year, a senior executive said on the sidelines of SIBCON 2024 this week.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Tasim Zahid)