Refining margins for fuel oil softened on Friday compared to the previous week, while bunker premiums also weakened this week as demand slowed amid a Lunar New Year lull, trade sources said.

Cracks for very low sulphur fuel oil closed at discountsof about $14 a barrel, inching a per cent lower from last week, based on LSEG data at 0830 GMT.

Bunker demand was slow in the week due to an earlier Lunar New Year holiday, with some shippers having inked their purchases in the previous week.

Premiums for delivered VLSFO at Singapore fell below $30 a metric ton this week, compared to above $30 a ton last week, sources said.

Meanwhile, high sulphur fuel oil cracks for the 380-cst grade slipped by over 15% week-on-week to discounts of around $13 a barrel by Friday.

Refinery feedstock demand from China was also slow amid a week-long holiday, while high-sulphur supplies remained plentiful in Asia as multiple offers continued to emerge in the spot market.

Separately, Taiwan’s Formosa offered main column bottoms for loading in March, via a tender that closes Friday.

INVENTORY DATA

ARA inventories rose 9.4% to 1.442 million tons in the week to Feb. 14, recovering to a three-week high, data from Dutch consultancy Insights Global showed.

OTHER NEWS

– Oil prices fell on Thursday after a larger-than-expected jump in U.S. crude inventories, raising concerns about demand in the world’s largest economy and top oil consuming nation.

– Global oil demand growth is losing momentum, the International Energy Agency said, as it trimmed its 2024 growth forecast, in sharp contrast to the view held by producer group OPEC.

– Italian energy group Eni on Friday reported fourth-quarter adjusted net profit of 1.64 billion euros ($1.8 billion), beating analysts’ expectations, helped in part by a positive arbitration outcome.

– Gabon’s national oil company has agreed to acquire Carlyle’s Assala Energy after it used its right to preempt the sale of the business for $1.3 billion to France’s Maurel & Prom, the firms said on Friday.

WINDOW TRADES O/AS

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

Source: Reuters reported by Jeslyn Lerh and edited by Shilpi Majumdar