Asia Fuel Oil-HSFO cash premium fall after crude dips

July 11, 2024

Spot premium for high sulphur fuel oil (HSFO) trended lower on Tuesday after crude prices slipped and as traders expected supplies to outpace demand in July.

The 380-cst grade high sulphur fuel oil (HSFO) cash premium was pegged at $5.40 a metric ton, down 92 cents from Monday’s close.

On the very low sulphur oil (VLSFO) front, premiums were relatively steady even as a flurry of trades at the deals window lifted demand sentiment.

Cash premium for VLSFO traded at $4.39 per ton on Tuesday, compared with $4.53 a day earlier.

NEWS

– Oil prices slipped on Tuesday after a hurricane that hit a key U.S. oil-producing hub in Texas caused less damage than markets had expected, easing concerns over supply disruption. O/R

– Weak refining margins and lower oil trading results will dent BP’s second-quarter profit by up to $700 million, the company said on Tuesday, sending its shares down by over 3%.

– Oil and gas companies in Texas were restarting operations on Tuesday after Hurricane Beryl lashed the state with 80-mph winds, damaging property and leaving millions of people without power.

WINDOW TRADES O/AS

– 180-cst HSFO: One trade

– 380-cst HSFO: No trade

– 0.5% VLSFO: Three trade

ASSESSMENTS

FUEL OIL
CASH ($/T)	ASIA CLOSE	CHANGE	PREV CLOSE	RIC
Cargo – 0.5% VLSFO	612.97	-5.70	618.67	MFO05-SIN
Diff – 0.5% VLSFO	4.39	-0.14	4.53	MFO05-SIN-DIF
Cargo – 180cst	516.72	-3.66	520.38	FO180-SIN
Diff – 180cst	5.00	0.33	4.67	FO180-SIN-DIF
Cargo – 380cst	514.43	-5.27	519.70	FO380-SIN
Diff – 380cst	5.40	-0.92	6.32	FO380-SIN-DIF
Bunker (Ex-wharf) Premium – 380cst	6.00	-0.25	6.25
Bunker (Ex-wharf) Premium – 0.5% VLSFO	8.00	0.00	8.00

For a list of derivatives prices, including margins, please double click the RICs below.
Brent M1	BRENTSGMc1
180cst M1	FO180SGSWMc1
180cst M1/M2	FO180SGSDMc1
180cst M2	FO180SGSWMc2
Visco M1	FOVISSGDFMc1
Visco M2	FOVISSGDFMc2
380cst M1	FO380SGSWMc1
380cst M1/M2	FO380SGSDMc1
380cst M2	FO380SGSWMc2
Cracks 180-Dubai M1	FO180SGCKMc1
Cracks 180-Dubai M2	FO180SGCKMc2
East-West M1	FOSGEWMc1
East-West M2	FOSGEWMc2
Barges M1	HFOFARAAMc1
Barges M1/M2	HFOFARAASMc1
Barges M2	HFOFARAAMc2
Crack Barges-Brent M1	HFOFARAACMc1
Crack Barges-Brent M2	HFOFARAACMc2