Asia’s spot fuel oil markets were broadly stable on Friday in largely quiet trade, even as a flurry of bids and offers continued to emerge.

Singapore cash differential for 380-cst high sulphur fuel oil (HSFO) was pegged at parity to cargo quotes, after holding in discounts since the start of the month.

Iraq’s SOMO offered a HSFO term tender for HSFO loading between July and December, according to industry sources.

The HSFO will be lifted from the Khor al-Zubair (KAZ) port in Iraq, with a volume of about 142,500 metric tons per month. The tender will close on May 18, with a validity of up to 20 days.

Strong volumes of Iraqi fuel oil have been flowing into Asia in recent months, keeping the market amply supplied on top of barrels from other regions, a fuel oil trader said.

Meanwhile, the very low sulphur fuel oil (VLSFO) market was little changed on the day, retaining some of the recent support, while cracks (LFO05SGBRTCMc1) hovered near premiums of $12 a barrel.

HSFO 380-cst cracks (FO380BRTCKMc1) held above $2 a barrel, supported by some strength in the Dubai crude complex.

INVENTORY DATA

– ARA fuel oil inventories (STK-FO-ARA) fell 5.0% week-on-week to 1.15 million tons in the week to May 8, based on data from Dutch consultancy Insights Global.

OTHER NEWS

– Oil prices were little changed on Friday as trade tensions between top oil consumers U.S. and China showed signs of easing and Britain announced a “breakthrough” trade deal with the United States.

– On Thursday, U.S. President Donald Trump’s administration imposed sanctions on a third Chinese independent, or “teapot”, oil refinery and port terminal operators in China for purchases of Iranian oil ahead of an expected fourth round of U.S.-Iran nuclear talks.
– Britain will sanction up to 100 oil tankers from Russia’s so-called shadow fleet, seeking to step up pressure on Moscow in the war with Ukraine as leaders from the Joint Expeditionary Force security alliance meet in Norway on Friday.

– Mexican state energy company Pemex plans will reopen old wells in a bid to squeeze more barrels out of them to boost declining oil production, according to two documents and four sources, as it struggles to reach an ambitious government target.

WINDOW TRADES

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

Source: Reuters