Spot discounts for fuel oil narrowed slightly in Asia on Monday while the market structure for key grades improved.

Singapore cash differential for 380-cst high sulphur fuel oil (HSFO) was pegged at a discount of about 50 cents a metric ton, while very low sulphur fuel oil (VLSFO) spot discount narrowed to about 95 cents.
Window trade was thin while market participants were mostly engaged in discussions for the APPEC event week.

Cracks traded rangebound from last Friday’s session. October crack for 380-cst HSFO (FO380BRTCKMc1) closed at a discount near $5 a barrel, while VLSFO crack (LFO05SGBRTCMc1) closed at a premium near $8 a barrel.

In tenders, India’s HPCL offered 33,000 tons of HSFO for loading from Mumbai port between Sept. 27 and 29, shipping records showed. The tender closes on Monday.

OTHER NEWS

– Oil prices climbed more than $1 on Monday, regaining some of last week’s losses, helped by the prospect of more sanctions on Russian crude after an overnight strike on Ukraine.

– China’s stockpiling of oil, which has helped soak up excess global crude production this year, is likely to continue at a similar rate in 2026, the chief strategist for commodity trading house Gunvor said on Monday.
– The shadow fleet of oil tankers has expanded following a slew of Western sanctions on Russia over its war in Ukraine, major trading house Trafigura’s chief economist, Saad Rahim, said on Monday.
– Bapco Energies expects to commission its Sitra refinery expansion in the fourth quarter of this year, and will be looking to buy heavier crudes than it now runs and more liquefied natural gas, a senior executive said on Monday.

WINDOW TRADES

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