Refining margins for very low sulphur fuel oil (VLSFO) extended gains on Tuesday amid persisting tight supplies, market participants said.

Singapore’s December 0.5% VLSFO crack closed at a premium of $13.94 a barrel, up from $12.85 on Friday, LSEG data showed. Markets were closed on Monday on account of a public holiday.

The term tender from Kuwait’s Al Zour refinery raised market expectations that stockpiling at the Doha and Al-Zour power plants will last until at least December, which will keep VLSFO exports from the Al-Zour refinery low, analysts at energy consultancy FGE said in a client note.

Cash premium for 0.5% VLSFO inched lower to $29.50 a metric ton on Tuesday from $29.75 in the earlier session.

In tenders, Bangladesh Petroleum Corp (BPC) sought 200,000-275,000 metric tons of 180-cst high sulphur fuel oil for delivery between January and June 2024, a tender document on the country’s government website showed on Tuesday.

The tender closes on Nov. 16, with validity of up to Jan. 31 next year.

OTHER NEWS

– Indonesia’s state energy company Pertamina and U.S. oil majors Exxon Mobil XOM.N and Chevron CVX.N are moving ahead with their discussions to invest in carbon capture facilities while Exxon eyes a petrochemical project in the country.

– The Kremlin said on Tuesday that Russia was acting in its own interests when asked about a probe by the United States into alleged violations of Western oil sanctions on Moscow.

WINDOW TRADES

– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: One trade

Source: Reuters reported by Mohi Narayan and edited by Arun Koyyur