Asia’s very low sulphur fuel oil premium fell for a third straight day, while fuel oil inventories at UAE’s Fujairah climbed by more than 50% week-on-week.
Fujairah inventories were at 12.31 million barrels (1.94 million tonnes), hitting a ten-week high amid an uptick in supply inflows.
“The consistent flow of Russian fuel oil cargoes to the region continues. Saudi Arabia and UAE remain key off-takers of Russian fuel oil cargoes arriving directly from Russian ports,” said Bharat Rajpurohit, MENA analyst for fuel oil at Refinitiv.
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Despite a jump in inventories, fuel oil exports from the Middle East to Singapore remained strong in the month, Refinitiv ship-tracking data showed, while Western supplies flowing to Asia also firmed month-on-month.
The 0.5% VLSFO cash differential slid further to three-month lows on Wednesday, hitting $6.50 a tonne over Singapore quotes.
FUJAIRAH INVENTORIES
Residual fuel oil stocks at Fujairah surged by over 50% to 12.31 million barrels (1.94 million tonnes) in the week ended Feb. 20, according to Fujairah Oil Industry Zone data published by S&P Global Commodity Insights.
OTHER NEWS
– Oil prices fell on Wednesday amid expectations the U.S. Federal Reserve will indicate later in the day that interest rates are set to rise more, stoking concerns of lower global economic growth and demand for fuel.
– Bangladesh’s private power producers will need $1 billion in foreign currency to import fuel and avert an energy crisis this summer, their industry association said in a letter to the central bank seen by Reuters.
– China’s Sinopec Corp said on Wednesday it completed trial runs at a one million tonnes-per-year ethylene plant in the southern Chinese province of Hainan.
– Global shipping companies are exploring ways to boost safety in transporting cargoes as risks grow from fires erupting inside containers or in cars at sea, officials said.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: One trade
– 0.5% VLSFO: One trade
Source: Reuters
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