Refining cracks for 380-cst high sulphur fuel oil (HSFO) have fallen back into discounts by the end of the week, following a few days of short-lived premiums.

Singapore prompt 380-cst HSFO/Brent crack (FO380BRTCKMc1) closed near discounts of 33 cents a barrel on Friday, showed LSEG data, with discounts widening further after the Asia close.

The rally showed signs of stalling in line with earlier market expectations, while backwardation spreads also eased.

Meanwhile, spot trade remained largely thin. As for downstream bunkers, demand continued to be slow in the month, trade sources said.

Sales of marine fuel logged weaker volumes in the first month of 2025, official data showed on Friday, edging higher on both monthly and yearly basis.

Singapore delivered-basis bunker premiums for very low sulphur fuel oil (VLSFO) held near low $10s to cargo quotes this week, compared with high $10s in January, according to sources.

Cargo premiums for VLSFO have softened slightly in the week, while cracks (LFO05SGBRTCMc1) continued to inch lower towards premiums near $11.60 a barrel.

INVENTORY DATA

– ARA fuel oil inventories (STK-FO-ARA) rose 4.6% to 1.39 million tons in the week to Feb. 13, based on data from Dutch consultancy Insights Global.

OTHER NEWS

– Oil prices rose on Friday, poised to end three weeks of decline, buoyed by rising fuel demand and expectations that U.S. plans for global reciprocal tariffs would not come into effect until April, giving more time to avoid a trade war.

– Tightened U.S. sanctions on Moscow have disrupted a roaring trade in discounted Russian oil to China and India, reviving demand for Middle Eastern and African crudes, roiling shipping markets and driving up oil prices.

– India and the U.S. agreed to start talks to clinch an early trade deal and resolve their standoff over tariffs as New Delhi promised to buy more U.S. oil, gas and military equipment and fight illegal immigration.

– Indonesia expects its B40 biodiesel programme, aimed at reducing its reliance on imported diesel fuel, will reach full implementation next month after delays at the start of the year, energy ministry official Eniya Listiani Dewi said on Friday.

WINDOW TRADES

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

Source: Reuters