Asia’s high sulphur fuel oil (HSFO) market softened at the start of the new month amid a selling flurry.

A flotilla of spot offers emerged for HSFO on Monday, with several trades surfacing for 380-cst HSFO. The Singapore cash differential for 380-cst HSFO was pegged at a premium of $x.xx, extending declines from last week.

HSFO cracks also traded lower at the prompt month, closing at premiums below $1 a barrel over crude oil quotes.

More HSFO tenders from Indian refiners were also underway, industry sources said.

HPCL offered four cargoes of HSFO for loading in end-June and July from Vizag, while Reliance offered a cargo of carbon black feedstock for loading from Sikka between June 20 and 21.

Benchmarks for HSFO are capped due to ample supplies and tepid demand in Asia, said sources. Meanwhile, very low sulphur fuel oil (VLSFO) was rangebound, with cracks holding above $11 a barrel, stable from last week.

OTHER NEWS

– Oil prices jumped by about 3% on Monday after producer group OPEC+ kept output increases in July at the same level as the previous two months.

– Azeri state energy company SOCAR will sign new agreements soon for oil and gas exploration in Azerbaijan, including with Exxon Mobil and BP, three sources told Reuters on Monday.

– Nigeria’s Dangote oil refinery will import at least five million barrels of U.S. WTI crude oil in July, three trading sources told Reuters, extending its buying spree after a potential record tally for June.

– Shares of Dutch tank storage company Vopak’s Indian joint venture Aegis Vopak Terminals rose on their Mumbai debut on Monday following an initial public offering.

Source: Reuters