Asia’s 180-cst high sulphur fuel oil (HSFO) market retreated on Wednesday as a lower offer emerged.
The cash differential for 180-cst HSFO dropped to a premium of $11.95 a metric ton, down by more than 25% day-on-day.
The sharp decline followed a recent collapse in the 380-cst HSFO market, which has since steadied.
The 380-cst HSFO cash differential FO380-SIN-DIF was pegged stable at a premium of $9 a ton, while September crack FO380DUBCKMc1 closed at a discount of $6.41 a barrel.
Meanwhile, very low sulphur fuel oil (VLSFO) continued to soften, with the 0.5% VLSFO September/October timespread pegged lower at $9.50 a ton at 0830 GMT, based on Refinitiv data.
September 0.5% VLSFO crack LFO05SGDUBCMc1 fell to a premium of $10.67 a barrel, while spot cash differential MFO05-SIN-DIF was pegged lower at a premium of $6.25 a ton.
FUJAIRAH INVENTORIES FUJAIRAH/
Fuel oil inventories at Fujairah FUJHD04 edged 5% higher at 9.80 million barrels (1.54 million tons) in the week to Aug. 28, hitting eight-week highs, showed Fujairah Oil Industry Zone data published by S&P Global Commodity Insights.
OTHER NEWS
– Oil rose on Wednesday after industry data showed a large draw in crude inventories in the U.S., and as concerns about a hurricane in the Gulf of Mexico kept investors on edge.
– Japan’s Mitsui & Co, Mitsui Chemicals, IHI Corp and Kansai Electric Power Co will conduct a joint study for establishing a hydrogen and ammonia supply chain in the Osaka coastal industrial zone, the companies said.
– The port of Rotterdam has for the first time refuelled a methanol-powered container ship as the shipping industry turns to the technology to cut its emissions, methanol producer OCI Global said.
– European oil majors Eni and Repsol plan to expand an oil-for-debt deal with Venezuela under U.S. approval, aiming to supply refined products to state firm PDVSA and boost oil deliveries to Europe, three people close to the matter said.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters reported by Jeslyn Lerh and editing by Sohini Goswami
