Spot discounts for high sulphur fuel oil narrowed on Wednesday amid the emergence of a firmer bid, though a wider trading lull persisted, market sources said.

Singapore’s cash differential for 380-cst high sulphur fuel oil was pegged at a discount of 75 cents a metric ton, while refining cracks steadied at discounts of about $10 a barrel.

Meanwhile, key benchmarks for very low sulphur fuel oil (VLSFO) also recovered, with cash differential flipping back into a small premium after sticking in discounts since the start of this month.

INVENTORY DATA

– Fujairah heavy fuel inventories surged 22.3% to 10.66 million barrels (1.68 million tons) in the week to April 15, hitting a 17-week high, FOIZ data published by S&P Global Commodity Insights showed.

OTHER NEWS

– Oil prices slipped for the third straight session on Wednesday as likely higher U.S. commercial inventories weighed, while weaker economic data from China and dimmed prospects of interest rate cuts stoked worries about global demand.

– Eastern Pacific Shipping has inked an agreement with Singapore’s port authority for six ammonia dual-fuel newbuilds to be registered under the Singapore Registry of Ships on delivery from 2026, the company said in statement on Wednesday.

– Russia’s offline primary oil refining capacity has been revised upwards for April by 107,000 metric tons from previous expectations to 4.430 million tons, Reuters calculations based on data from industry sources showed on Wednesday.

– The Biden administration has signaled that it could reimpose oil sanctions on Venezuela on Thursday in response to what U.S. officials see as President Nicolas Maduro’s failure to meet his commitments for free and fair elections this year.

Source: Reuters reported by Jeslyn Lerh