Spot premium for 380-cst high sulphur fuel oil (HSFO) was at more than a year’s high as of Wednesday, while Kuwait Petroleum Corporation offered HSFO for loading in October, trade sources said.

The premium was pegged above $17 a metric ton to Singapore quotes, extending gains from the previous day, while backwardation held steady to stronger at the prompt months.

The market had rallied higher as with very low sulphur fuel oil (VLSFO), which has been strong on supply tightness for prompt dates. However, trade sources expect the market to ease into the fourth quarter.

Meanwhile, Kuwait’s KPC offered 60,000 tons of 380-cst HSFO for loading between Oct. 2 and Oct. 10. The tender closes on Wednesday.

INVENTORY DATA

– Fujairah heavy fuel inventories FUJHD04 jumped 25.3% to 10.03 million barrels (1.58 million tons) in the week to Oct. 9, reaching a two-month high, based on latest FOIZ data published by S&P Global Commodity Insights.

OTHER NEWS

– Oil climbed on Wednesday as a drop in U.S. crude inventories and concern about Hurricane Francine disrupting U.S. output countered worries about weak global demand. O/R

– The head of Vitol International Shipping said on Wednesday that large quantities of uninsured oil are currently afloat on ships due to the rise of the dark fleet in the aftermath of the Russia-Ukraine war

– Trafigura expects more switches of dirty to clean tankers to continue, with 12% of its current very-large-crude-carrier fleet trading in the clean market, a company executive told the annual APPEC conference on Wednesday.

– Major buyers of liquefied natural gas flagged risks of purchasing cargoes from the United States following the decision by President Joe Biden’s administration to pause export permits of the superchilled fuel to non-Free Trade Agreement countries.

WINDOW TRADES O/AS

– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: Three trades

Source: Reuters reported by Jeslyn Lerh and edited by Maju Samuel