Asia’s spot market for very low sulphur fuel oil (VLSFO) eased on Wednesday, as trade participants eyed new supply drivers.

The 0.5% VLSFO cash premium for very low sulphur fuel oil (VLSFO) fell to $25.92 a metric ton, while refining margin slipped to a premium of $14.37 a barrel.

The market had rallied last week, as it priced in a tight supply outlook following issues at Kuwait’s Al Zour refinery.

Trade participants continued to keep tabs on supply developments, which include a pending restart at the refinery, as well as a looming OPEC+ meeting that could affect upstream heavy crude supply.

Meanwhile, high sulphur fuel oil (HSFO) was quiet amid a lack of spot bids and offers. Cash differentials for 380-cst HSFO remained in discounts, while December crack rose to a value of minus $11.69 a barrel.

FUJAIRAH INVENTORIES

Fuel oil inventories at Fujairah rebounded 18.7% to 11.22 million barrels (1.77 million tons) in the week to Nov. 20, showed Fujairah Oil Industry Zone data published by S&P Global Commodity Insights.

OTHER NEWS

– Oil stayed within a narrow range on Wednesday in quiet pre-U.S. Thanksgiving holiday trading, as the market awaited news on output cuts from the OPEC+ producers group and looked for confirmation of a sharp build-up in U.S. crude stocks.

– U.S. officials said seven energy companies have been impacted by an oil discharge near Main Pass Oil Gathering Co’s pipeline system in the Gulf of Mexico that is estimated to have released more than a million gallons of crude oil.

– Danish shipping group Maersk said on Wednesday it has agreed to buy 500,000 tonnes of bio-methanol and e-methanol per year from China’s Goldwind, to enable low carbon operations, starting in 2026

– China will launch a series of pilot projects to spur domestic production and consumption of biodiesel, the National Energy Administration has said, beefing up environmental efforts in an area where the country lags other big economies.

WINDOW TRADES

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

Source: Reuters reported by Jeslyn Lerh and edited by Shailesh Kuber