Spot premiums for high sulphur fuel oil (HSFO) were largely stable on Monday, though the 380-cst product traded lower into mid-April.

Cash premium for 380-cst HSFO was adjusted below $21 a metric ton, with offers retreating from the previous week.

Inter-month spread between the balance-month and April remained steeply backwardated amid a recent rally.

The derivatives pricing curve from April and beyond was more reflective of current fundamentals, which maintains backwardation but at a milder scale, trade sources said.

Meanwhile, benchmarks for very low sulphur fuel oil (VLSFO) continued to be underpinned by weak demand.

FUJAIRAH DATA

Bunker fuel sales at Fujairah fell in February to their lowest since data started being published in 2021.

Volumes, excluding lubricants, totalled 554,117 cubic metres (about 549,000 metric tons) for February, showed latest Fujairah Oil Industry Zone (FOIZ) data.

OTHER NEWS

– Oil traded higher on Monday after the United States vowed to keep attacking Yemen’s Houthis until the Iran-aligned group ends its assaults on shipping, and Chinese economic data fuelled hopes for higher demand.

– China’s crude oil throughput in January and February rose 2.1% versus a year earlier, official data showed on Monday, supported by a new refinery and holiday travel, but weak refining margins persisted.

– Turkey’s largest oil refiner Tupras is set to receive a cargo of Itapu crude early next month, its first such purchase from Brazil, according to a source with knowledge of the matter, and ship tracking data.

– Mexican state energy company Pemex is in talks with Carlos Slim, which could see the billionaire tycoon help bankroll two of the country’s most promising crude oil and natural gas fields, sources familiar with the matter told Reuters.

Source: Reuters