Cash premiums for fuel oil inched higher in Asia on Monday, while Kuwait’s KPC offered more high sulphur fuel oil (HSFO) via tender.
The refiner offered 80,000 metric tons of 380-cst HSFO for loading in end-January via a tender that closes on Tuesday, trade sources said.
It previously offered a semi-term tender for loading HSFO between February to April.
Despite ample HSFO supplies in the wider market, cash premiums edged slightly higher in Asia on Monday as the product traded firmer.
Cash premium for 380-cst HSFO rose to $4 a ton, while February cracks were at discounts of $11 to $12 a barrel.
Meanwhile, the very low sulphur fuel oil (VLSFO) market also rebounded slightly amid stronger bids.
Cash premium MFO05-SIN-DIF rose to $2.48 a ton, while cracks were at premiums of $10 to $11 a barrel.
BUNKER UPDATES
– Equatorial Marine Fuel Management Services, TFG Marine and Sinopec Fuel Oil Singapore were the top three marine bunker suppliers in Singapore in 2023, the latest data from the port authority showed.
– Maersk Oil Trading, Chevron Singapore and BP Singapore were the top three marine biofuel suppliers.
– Marine fuel sales in Singapore hit a record high last year, official data showed on Friday, driven by record container throughput and increased interest in biofuels.
OTHER NEWS
– Oil prices edged up on Monday as traders watched for supply disruption risks in the Middle East following strikes by U.S. and British forces to stop Houthi militia in Yemen from attacking ships in the Red Sea.
– China’s annual crude oil imports hit an all-time high in 2023, customs data showed on Friday, as fuel demand recovered from a pandemic-induced slump despite economic headwinds.
– Thai Oil is planning to shut one of the three crude distillation units at its Sriracha refinery complex on Monday for repairs after production issues cropped up early last week, two sources familiar with the matter said.
– QatarEnergy, the world’s second-largest exporter of liquefied natural gas, has stopped sending tankers via the Red Sea although production continues, a senior source with direct knowledge of the matter told Reuters on Monday.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: Two trades
– 0.5% VLSFO: One trade
Source: Reuters reported by Jeslyn Lerh and edited by Sohini Goswami
