Asia’s cash premium for very-low sulphur fuel oil (VLSFO) fell for a second straight day as selling interest persisted, while a steady stream of tenders from Kuwait’s Al Zour refinery is also expected to weigh on the market.
The 0.5% VLSFO cash premium (MFO05-SIN-DIF) eased to $6.13 a tonne over Singapore quotes as spot offers softened from the previous day, though front-month refining margin (LFO05SGDUBCMc1) rose to a premium of $10.89 a barrel as crude prices eased in Asia trading hours.
Kuwait’s Al Zour had sold its latest cargo for mid-June at a discount of about $8 a tonne to Singapore quotes, market sources said. The price is considered to be expensive after taking into account freight costs, several sources said.
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Meanwhile, high sulphur fuel oil (HSFO) was little changed, though its market structure eased slightly on Wednesday.
The 380-cst HSFO cash differential (FO380-SIN-DIF) dipped to a premium of $1.25 a tonne over Singapore quotes, while front-month crack for 380-cst HSFO (FO380DUBCKMc1) closed at a discount of $9.03 a barrel, holding near the same level for the past sessions.
In tenders, Malaysia’s RAPID recently sold 540,000 barrels of low-sulphur atmospheric residue for loading between June 11 and June 12, according to market sources.
FUJAIRAH INVENTORIES
Fujairah fuel oil inventories climbed 1% to 12.09 million barrels (1.90 million tonnes) in the week to June 5, showed Fujairah Oil Industry Zone data published by S&P Global Commodity Insights on Wednesday.
OTHER NEWS
– Oil fell on Wednesday as concerns over global economic headwinds deepened, erasing the price gains booked after top crude exporter Saudi Arabia’s surprise weekend pledge to deepen output cuts.
– Daily power cuts have returned to west-central Venezuela, shutting air conditioners during a heat wave and hitting factories, households and utilities as poorly maintained thermal plants fail to compensate for weak hydroelectric generation, residents, engineers and analysts said.
– Australia’s Woodside Energy has started marketing a new African crude oil from Senegal’s first oil project, where the company aims to start producing by the end of this year, a senior executive said.
– The European Commission is investigating the flow of allegedly fraudulent biofuels into the EU following a complaint from Germany, sources told Reuters, as a Commission spokesman said the bloc was determined to tighten oversight of the trade.
WINDOW TRADES
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– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters
