Asia’s spot cash premium for very low sulphur fuel oil (VLSFO) rose on Tuesday, extending gains from the previous session, while the market closely watched the results of Kuwait’s April-loading Al Zour tenders.
The refiner had offered two 120,000-tonne cargoes for loading between April 3-4 and April 7-8 respectively, a sign of steady export supplies as it continues to ramp up operations.
Despite this, Singapore’s cash premium for 0.5% VLSFO (MFO05-SIN-DIF) jumped to $10.48 a tonne, after staying trapped in single-digit premiums for nearly a month. A spot trade had emerged at $11 a tonne to Singapore quotes for April 15-19 loading.
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Meanwhile, cash premiums for high sulphur fuel oil are expected to trend steady to lower in the near term, as Middle Eastern supplies and Russian supplies to Asia remained strong.
– Oil rose on Tuesday, extending a recovery from a 15-month low hit the previous day, as the rescue of Credit Suisse eased worries about global banking sector risks that could hit economic growth and fuel demand.
– Trafigura helps to export limited supplies of Russian refined products within the rules of international sanctions and is considering whether to resume more trade in its oil, CEO Jeremy Weir said on Tuesday.
– Global commodities trader Mercuria made a record net profit of $2.98 billion in 2022 after Russia’s invasion of Ukraine rocked global energy markets, a document summarising the results showed.
– Iran counts on “huge volumes” of oil and gas swaps from Russia this year, Iranian Economy Minister Ehsan Khandouzi said in an interview with Russia’s RIA state news agency in remarks published on Tuesday.
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: One trade