Spot premiums for Asia’s very low sulphur fuel oil (VLSFO) traded lower on Wednesday, while spot discounts for high sulphur fuel oil (HSFO) were rangebound from the previous session.

VLSFO traded at a softer premium of $4 a metric ton to cargo quotes. Meanwhile, front-month cracks (LFO05SGBRTCMc1) dipped below premiums of $10 a barrel on Wednesday, based on LSEG data.

Several deals also emerged for 380-cst HSFO, at discounts between $4 and $6 to cargo quotes, while cracks held near four-month lows at discounts of about $4 a barrel.

In the regional market, some tenders for August were also underway.

Taiwan’s CPC offered 20,000 tons of catalyst fractionator bottoms for August loading. The tender closes on Wednesday with validity until Friday, a CPC website notice showed.

Separately, Sri Lanka’s LIOC sought 16,000 tons of VLSFO for delivery at Colombo or Trincomalee, between August 8 and 12. The tender also closes on Wednesday, according to industry sources.

INVENTORY DATA

– Fujairah heavy fuel inventories (FUJHD04) gained 8.0% at 10.34 million barrels (1.63 million tons) in the week to July 21, FOIZ data published by S&P Global Commodity Insights showed.

OTHER NEWS

– Oil prices were little changed on Wednesday after falling for three consecutive sessions as a U.S. tariff deal with Japan improved global trade sentiment.
– Russia-backed Indian refiner Nayara Energy, sanctioned by the European Union, did not award a spot naphtha export tender after revising its payment terms, three trade sources said on Wednesday.
– China warned on Wednesday against the risk of power supply disruptions as people struggled to keep cool in record heat baking large swathes of the country.
– Marathon restarted a diesel-producing unit and the gasoline-producing unit at its 631,000 barrel-per-day (bpd) Galveston Bay Refinery in Texas City, Texas, people familiar with plant operations said.

WINDOW TRADES

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

Source: Reuters