Spot premiums for fuel oil were little changed on Friday, though refining margins for high-sulphur and low-sulphur grades logged increases for a second straight week.

The strength in the cracks was driven by a downtrend in crude prices, which were headed for their biggest weekly loss in more than a month.

Front-month Dubai cracks for 380-cst high sulphur fuel oil (HSFO) closed at discounts of about $5.15 a barrel on Friday, up 28% from last week, based on LSEG’s data.

Meanwhile, 0.5% low sulphur fuel oil (VLSFO) cracks closed at premiums of $14.18 a barrel, inching 1% higher from the previous week.

Despite the stronger performance in margins, spot benchmarks have recently pared due to recovering supplies to Asia, according to trade sources.

Meanwhile, bunker premiums held rangebound from the previous week amid a lack of fresh drivers, sources said.

ARA INVENTORIES

– Fuel oil inventories in the ARA rose 3.3% at 1.28 million tons in the week to Oct. 17, data from Dutch consultancy Insights Global showed.

OTHER NEWS

– Oil futures steadied on Friday, though prices were headed for their biggest weekly loss in more than a month.

– China and Saudi Arabia were the top destinations for Russian seaborne fuel oil and vacuum gasoil exports in September, traders said and LSEG data showed.

– Northeast Asian refiners sold November-loading ultra low-sulphur diesel at the narrowest discounts since the start of the year as supply has tightened due to lower regional output, trade sources said.

– Nigerian fuel traders are ramping up petrol imports to augment supply from the Dangote Refinery following worsening fuel queues, the head of a local traders group said.

WINDOW TRADES

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

Source: Reuters reported by Jeslyn Lerh and edited by Devika Syamnath