Asia’s high sulphur fuel oil benchmarks were range-bound on Wednesday, while more tenders were underway for cargoes loading in July.

Kuwait’s KPC offered two spot cargoes of 380-cst HSFO for loading between July 19-20 and July 26-27. The tender closes on Wednesday, according to market sources.

Benchmarks for HSFO held largely stable in recent sessions. The market had firmed in the second quarter but has since pared gains as seasonal demand is expected to taper off.

Market backwardation 380-cst HSFO in the prompt trading months narrowed to levels below $6 per metric ton on Wednesday, while margins for August were stable between discounts of $6.50 and $7 per barrel.

The low-sulphur market (VLSFO) also softened on Wednesday, with cash premium sliding day-on-day, while refining cracks LFO05SGDUBCMc1 dipped below premiums of $11 per barrel.

Meanwhile, the August hi-5 fuel oil spread narrowed to $111.25 per ton on Wednesday, after hitting its widest in seven weeks on Tuesday.

INVENTORY DATA

– Fujairah heavy fuel inventories fell 5.7% to 8.74 million barrels (1.46 million tons) in the week to July 1, dipping to a 12-week low, showed FOIZ data published by S&P Global Commodity Insights.

OTHER NEWS

– Oil prices rose on Wednesday after industry data showed a bigger-than-expected draw in U.S. crude stockpiles, while the market kept tabs on flaring tensions in the Middle East.

– OPEC oil output rose in June for a second consecutive month, a Reuters survey found, as higher supply from Nigeria and Iran offset the impact of voluntary supply cuts by other members and the wider OPEC+ alliance.

– Vitol secured three liquefied natural gas bunkering vessels through its shipping company, the commodity trader said in a release on Wednesday.

– Shell will pause construction work at one of Europe’s largest biofuel plants due to weak market conditions, the latest low-carbon project to suffer a setback as CEO Wael Sawan strives to boost returns.

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