Asia’s cash premium for 380-cst high sulphur fuel oil (HSFO) extended gains on Monday, staying at its highest in more than one and a half years.

Singapore 380-cst cash premium was pegged at close to $22 a metric ton on Monday, compared with $20.35 in the previous session.

Brisk trading continued to emerge for 380-cst HSFO, with firmer-priced trades seen for dates in late March and early April, based on trade sources.

However, bunker premiums have failed to catch up with cargo strength in recent sessions due to weak refuelling demand.

Both ex-wharf and delivered 380-cst HSFO bunker premiums hovered well below cargo premiums, said sources.

The market eyed ample HSFO supplies in the month, with high prices drawing more cargoes to Asia.

Meanwhile, very low sulphur fuel oil (VLSFO) remained weak on bearish fundamentals, with spot differentials retaining discounts.

Refining margins rebounded on Monday, with April VLSFO/Brent crack (LFO05SGBRTCMc1) edging higher to premiums near $7.50 a barrel, while 380-cst HSFO cracks (FO380BRTCKMc1) closed at discounts of about $2.05 a barrel, based on LSEG data.

BUNKER UPDATES

– Singapore, the world’s largest bunker hub for ships, has launched a new standard for methanol bunkering, the Maritime and Port Authority of Singapore (MPA) said on Monday.

OTHER NEWS

– Oil prices fell on Monday as concern about the impact of U.S. import tariffs on global economic growth and fuel demand, as well as rising output from OPEC+ producers, cooled investor appetite for riskier assets.

– Exports of Kazakhstan’s CPC Blend to Asia are expected to stay high in March and April after hitting their highest in well over a year, according to traders and shipping data, as Chinese and South Korean buyers replaced more expensive Middle Eastern oil.

– The U.S. government is studying ways it could ease sanctions on Russia’s energy sector as part of a broad plan to enable Washington to deliver swift relief if Moscow agrees to end the Ukraine war, according to two sources familiar with the matter.

– Abu Dhabi National Oil Company is considering listing its international investment arm XRG on an exchange outside of the United Arab Emirates, three people with knowledge of the matter said, potentially creating one of the largest listed energy companies globally.

WINDOW TRADES

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

Source: Reuters