Asia’s spot fuel oil market was relatively stable as quiet trade persisted on Thursday, with differentials holding in steady discounts as bearish supply fundamentals continued to weigh.
Cash differential for very low sulphur fuel oil (VLSFO) fell to a discount of 80 cents a metric ton, while 380-cst high sulphur fuel oil (HSFO) was pegged at a discount of $2 a ton.
Meanwhile, refining margins extended declines. VLSFO cracks fell below premiums of $10 a barrel at 0830 GMT, while 380-cst HSFO cracks sank below discounts of $12 a barrel.
INCOMING SUPPLIES
Singapore inventories dipped 0.4% to 21 million barrels (3.47 million metric tons) in the week to April 10, the latest data from Enterprise Singapore showed, falling for the third week in a row.
BIOFUEL BUNKER UPDATES
Spot marine biofuel premiums have weakened further at Singapore, weighed by slow demand, market sources said.
Premiums for the flagship B24 marine biofuel blend recently traded between $120 and $130 a metric ton over 0.5% low sulphur fuel oil quotes, on a delivered Singapore basis, according to sources from bunker suppliers, trading firms and shipowners.
OTHER NEWS
– Oil slipped on Thursday as persistent inflation dampened rate cut optimism, but stayed near six-month highs as investors braced for a potential attack on Israeli interests by Iran.
– Russia’s Orsk oil refinery, which had halted output after widespread floods, declared force majeure on fuel supply from April 8, according to a document issued by plant owner Forteinvest and seen by Reuters.
– U.S. weekly imports of Mexican crude oil fell to its lowest on record in the first week of April, as Mexico’s state energy company Pemex has cut exports to supply more oil to its domestic refineries.
– Occidental Petroleum said on Wednesday production is expected to commence in the coming days in the eastern Gulf of Mexico after some operations were shut for about five months.
Source: Reuters reported by Jeslyn Lerh and edited by Shweta Agarwal
