Fuel oil benchmarks were little changed in Asia on Tuesday, though the market for very low sulphur fuel oil (VLSFO) retained downside risk after Kuwait issued another spot tender for March.
Kuwait’s Al Zour refinery offered another VLSFO cargo for loading in March, via a tender that closes on Tuesday, trade sources said. The cargo comprises 120,000 tons of VLSFO and is expected to load between March 22 and 24.
This came shortly after it issued a VLSFO tender last week for loading between March 18 and 19. The cargo was awarded to trading house Glencore at a discount of about $9 to $9.25 a ton, sources said.
Expectations of rising Al Zour supplies due to the refinery’s ramp-up have kept the global VLSFO market under pressure in the first quarter so far.
The cash premium for VLSFO was little changed at $1.25 a metric ton on Tuesday, while refining cracks held at premiums of around $13 to $13.50 a barrel.
Spot differentials for high sulphur fuel oil (HSFO) remain discounted as selling interest persisted. Meanwhile, 380-cst cracks FO380DUBCKMc1 were steady at discounts of about $11 a barrel at Tuesday’s Asia close.
Russian fuel oil supplies continued to flood the East of Suez region this month, though the market kept tabs on Russian refinery attacks.
OTHER NEWS
– Oil prices rose on Tuesday as geopolitical tensions in the Middle East continued to spur concern, but gains were limited on bearish demand sentiments and as the market waited for monthly reports from oil agencies.
– Ukraine pounded targets across Russia on Tuesday with at least 25 drones and seven missiles, Russia’s defence ministry said, in a sweeping attack that one local official said had left at least one refinery in the world’s second biggest oil exporter on fire.
– Oil tanker manager Hafnia is investigating an accident involving its vessel Hafnia Seine, which hit a single point mooring buoy at India’s Sikka port on Sunday, the Denmark-based company said on Tuesday.
– A leak on the gasoline-producing fluidic catalytic cracker at TotalEnergies’ 238,000 barrel per day Port Arthur Texas refinery led to a shutdown of the coker and small crude distillation unit, said people familiar with plant operations.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters reported by Jeslyn Lerh edited by Shailesh Kuber
