Asia’s high-sulphur fuel oil (HSFO) market softened on Friday after flipping into premiums in the last session, although sentiment remained positive over hopes of recovery in China’s buying activity.
The cash differential for 380-cst HSFO fell to a premium of 20 cents a metric ton from 70 cents a ton a day earlier. Similarly, cash premium for 180-cst HSFO traded lower at $1.92 per ton.
Traders said severe weather conditions at the Black Sea may ascertain the market’s direction in the coming week. Oil loadings from Russia’s Black Sea port of Novorossiisk were suspended again as a storm resumed, two sources familiar with the matter told Reuters on Friday.
- Promotional Ads -
Severe storms in the region since last Friday disrupted up to 2 million barrels per day (bpd) of oil exports from Kazakhstan and Russia last week.
On the very low-sulphur front, the spot market remained stable. Cash premiums MFO05-SIN-DIF for 0.5% very low sulphur fuel oil traded at $12.84 a ton on Friday.
Fuel oil stocks at the Amsterdam-Rotterdam-Antwerp (ARA)commercial hub rose to 1.266 million tons in the week to Thursday, compared with 1.263 million tons in he prior week.
– 180-cst HSFO: No trade
– 380-cst HSFO: four trades
– 0.5% VLSFO: three trades
– United Arab Emirates President Sheikh Mohammed Bin Zayed Al Nahyan, whose country is hosting the COP28 climate summit, announced on Friday the establishment of a $30 billion climate fund for global climate solutions that aims to attract $250 billion of investments by the end of the decade.
Source: Reuters (Reporting by Mohi Narayan; Editing by Varun H K)