Spot premiums for fuel oil were little changed in Asia on Tuesday, with the market eyeing tenders for October-loading product.
The 0.5% VLSFO premium was pegged at $3 a metric ton, while October crack closed at a premium of $8.26 a barrel at 0830 GMT.
Meanwhile, the HSFO market eased slightly, with spot trade remaining largely thin.
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The 380-cst HSFO cash premium eased to $11.20 a ton, while October crack dipped to a discount of $9.50 a barrel.
In tenders, Indonesia’s Pertamina offered residual fuel products for loading in October, including low sulphur fuel oil (LSFO), low sulphur waxy residue (V-1250) and decant oil (DCO).
INCOMING SUPPLIES
Fuel oil supplies to Asia are pegged at about 6 million tons for September, climbing about 5% from August, based on latest assessments from LSEG Oil Research.
The increase is led by an uptick in western arbitrage inflows, while supplies from the Middle East held steady.
OTHER NEWS
– Brent crude futures held above $90 a barrel on Tuesday, while investors awaited macroeconomic data that could indicate whether interest rates will rise further in the U.S. and Europe.
– Venezuela President Nicolas Maduro has arrived in Beijing for a visit that will likely feature energy and debt repayment talks amid China’s souring relations with the West.
– Shares of Viva Energy dropped on Tuesday and were on track for their worst day in more than three years after media reports emerged over Swiss-based Vitol’s potential stake sale in the Australian fuel retailer.
– Japan’s Cosmo Oil, a unit of Cosmo Energy Holdings, shut down the 86,000 barrels-per-day crude distillation unit at the Yokkaichi refinery on Sept. 9 due to electrical system trouble, a company spokesperson said on Tuesday.
WINDOW TRADES O/AS
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– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Varun H K)
