Asia’s spot cash premium for very low sulphur fuel oil (VLSFO) gained on Thursday after Singapore stocks declined, although overall sentiment remained negative on prospects of increasing supplies this month, analysts and traders said.
The product’s cash differential rose by 57 cents to $1.57 a metric ton.
Analysts at energy consultancy FGE expect Singapore VLSFO cracks to ease slightly and average $5-6 per barrel in March and April due to high supplies in the market.
Meanwhile, Singapore inventories of fuel oil fell to a three-month low of 19.139 million barrels in the week to March 6, government data showed.
Fuel oil imports into Singapore rose by 76% week-on-week, while exports rose by 109%, the data showed.
OTHER NEWS
– India’s fuel consumption rose 5.7% year-on-year in February, government data showed, helped by strong factory activity in the world’s third-biggest oil importer and consumer.
– China’s crude oil imports in the first two months of 2024 rose 5.1% from a year earlier, data showed, as refiners raised purchases to meet fuel sales during the Lunar New Year holiday.
WINDOW TRADES O/AS
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: Three trades
Source: Reuters reported by Mohi Narayan and edited by David Evans
