Fuel oil cash differentials fell in Asia on Monday after the market structure weakened for the prompt months, while a new trading week kicked off with the Asia Pacific Petroleum Conference (APPEC) conference.

Singapore’s 380-cst high sulphur fuel oil (HSFO) cash differential slipped to a premium of $6.98 a metric ton, while October crack fell to a discount of $10.07 a barrel at 0830 GMT.

Cash differential for 0.5% very low sulphur fuel oil (VLSFO) closed at a premium of $4.66 a ton, while refining crack for October eased to a premium of $7.84 a barrel.

APPEC 2023

– Global crude oil supplies are expected to improve in the next six to eight weeks because of refinery maintenance, although sour crude will stay tight, said Russell Hardy, chief executive of the world’s largest independent oil trader, Vitol.

– The market sees the fair price for oil at $72 to $88 per barrel, a senior official at global commodities trading firm Trafigura said on Monday, adding that he sees risks to the upside.

– The Group of Seven’s price cap on Russian oil is still effective in limiting Russia’s revenue and oil supplies, a senior U.S. Treasury official told the APPEC conference on Monday.

OTHER NEWS

– Oil prices were stable on Monday amid expectations that major producers would keep supplies tight, as hopes grew for the Federal Reserve to leave interest rates unchanged to avoid dampening the U.S. economy.

– Chevron Australia and unions representing workers at two of the U.S. energy major’s liquefied natural gas facilities in Australia began talks on Monday aimed at averting strikes scheduled for Thursday should the parties fail to reach a deal.

– U.S. crude oil stocks have fallen to their lowest level this year and likely will shrink further, analysts said, as record demand, producer supply cuts, weaker futures and rising storage costs all point to increasing drawdowns.

– British oilfield services firm Wood Group has signed an agreement worth around $330 million with UK North Sea oil and gas producer Harbour Energy that will create hundreds of jobs at its operations in Aberdeen, Scotland, and offshore.

Source: Reuters reported by Jeslyn Lerh edited by Shilpi Majumdar