Cash premium for very low sulphur fuel oil (VLSFO) continued to rise on Monday as China reduced exports of the clean marine fuel due to limited export quotas and sluggish domestic output.
The premium for 0.5% VLSFO MFO05-SIN-DIF rose to $29.38 a metric ton from $27.91 on Friday.
Cargo differentials for 380-cst high sulphur fuel oil (HSFO) FO380-SIN-DIF edged lower by about 26 cents to a discount of $3.42 per metric ton to Singapore quotes, while 180-cst HSFO also declined on Monday, by 25 cents to a premium of 33 cents per metric ton.
CHINA’S FUEL OIL TRADES
China’s fuel oil imports rebounded in October from a one-year low logged in the previous month, customs data showed on Monday, thanks to strong demand from Chinese independent refiners amidst tight crude oil import quotas.
Total fuel oil imports reached 1.81 million metric tons in October, up from 1.04 million tons in September, according to data from the General Administration of Customs. The import tally included purchases under ordinary trade, which is subject to import duty and consumption tax, as well as imports into bonded storage.
OTHER NEWS
– OPEC+ is set to consider whether to make additional oil supply cuts when the group meets later this month, three OPEC+ sources told Reuters after prices dropped by almost 20% since late September.
– GS Caltex Singapore Pte Ltd said on Monday it has sold its first cargo of biofuel-blended marine gasoil to Maersk Oil Trading (MOT) at the world’s largest bunker hub Singapore as it seeks to expand into lower carbon fuels.
WINDOW TRADES O/AS
– 180-cst HSFO: No trade
– 380-cst HSFO: Two trades
– 0.5% VLSFO: Two trades
Source: Reuters reported by Muyu Xu and edited by Shailesh Kuber
