Asia Fuel Oil-Spot premiums broadly stable after recent declines

November 14, 2024

Spot premiums for fuel oil were largely unchanged on Monday amid a backdrop of thin trade, steadying after recent declines.

Bids held steady-to-higher for both high-sulphur (HSFO) and low-sulphur (VLSFO) grades, though gains remain capped by expectations of subsequently firmer supply arrivals.

The cash premium for Singapore 380-cst HSFO was pegged at $10.85 a metric ton on Monday, though 180-cst HSFO slipped to $7.65 a ton as offers softened.

VLSFO held largely stable from the previous session at about $9 a ton, though market backwardation narrowed at the prompt months.

Meanwhile, cracks for December contracts closed higher, with VLSFO LFO05SGDUBCMc1 at premiums of about $12.85 a barrel and 380-cst HSFO FO380DUBCKMc1 inching towards discounts of about $5.25 a barrel, based on LSEG’s data at 0830 GMT.

REFINERY UPDATES

– More than a quarter of U.S. Gulf of Mexico oil and 16% of natural gas output remained offline in the aftermath of storm Rafael, the U.S. offshore energy regulator reported on Sunday.

OTHER NEWS

– Oil prices were little changed on Monday as the threat of supply disruptions from a U.S. storm eased and after China’s stimulus plan disappointed investors seeking fuel demand growth in the world’s No. 2 oil consumer. O/R

– Saudi Arabia’s crude oil supply to China is set to fall to about 36.5 million barrels in December, trade sources said on Monday, on weak demand from the world’s largest importer.

– The Biden administration said it has bought its last batch of oil for the Strategic Petroleum Reserve after selling a record amount from the facility in 2022 to counter fuel prices that had risen after Russia’s invasion of Ukraine.

– U.S. renewable fuel credits rose to multi-month highs on increased demand from refiners trying to comply with mandates and higher prices for soyoil, surprising traders who expected Donald Trump’s reelection as U.S. president to weigh on the market.

WINDOW TRADES O/AS

– 180-cst HSFO: No trade

– 380-cst HSFO: No trade

– 0.5% VLSFO: No trade

ASSESSMENTS

FUEL OIL
CASH ($/T)	ASIA CLOSE	CHANGE	PREV CLOSE	RIC
Cargo – 0.5% VLSFO	557.12	-5.12	562.24	MFO05-SIN
Diff – 0.5% VLSFO	9.00	1.00	8.00	MFO05-SIN-DIF
Cargo – 180cst	451.63	-4.63	456.26	FO180-SIN
Diff – 180cst	7.65	-1.40	9.05	FO180-SIN-DIF
Cargo – 380cst	444.99	1.12	443.87	FO380-SIN
Diff – 380cst	10.85	0.60	10.25	FO380-SIN-DIF
Bunker (Ex-wharf) Premium – 380cst	14.00	2.25	11.75
Bunker (Ex-wharf) Premium – 0.5% VLSFO	14.00	1.75	12.25

For a list of derivatives prices, please refer to ENSWAP/INFO or the RICs below:
180cst M1	FO180SGSWMc1
180cst M1/M2	FO180SGSDMc1
380cst M1	FO380SGSWMc1
380cst M1/M2	FO380SGSDMc1
0.5% VLSFO M1	LFO05FSGMc1
0.5% VLSFO M1/M2	LFO05FSGSMc1
Cracks 180cst-Brent M1	FO180BRTCKMc1
Cracks 180cst-Dubai M1	FO180SGCKMc1
Cracks 380cst-Brent M1	FO380BRTCKMc1
Cracks 380cst-Dubai M1	FO380DUBCKMc1
Cracks 0.5% VLSFO-Brent M1	LFO05SGBRTCMc1
Cracks 0.5% VLSFO-Dubai M1	LFO05SGDUBCMc1
Visco 180cst/380cst M1	FOVISSGDFMc1
Hi-5 0.5% VLSFO/380cst M1	FO05-380SGMc1
GoFo 10PPM/0.5% VLSFO M1	GO10FO05FSGMc1
East-West M1	FOSGEWMc1
Barges M1	HFOFARAAMc1
Barges M1/M2	HFOFARAASMc1
Crack Barges-Brent M1	HFOFARAACMc1