Spot differentials for very low sulphur fuel oil (VLSFO) recovered for a fourth consecutive trading day as stronger bids emerged.

The Singapore VLSFO cash differential was pegged at a premium near $3 a metric ton, with the product trading at $4 a ton for prompt loading dates.

Meanwhile, 380-cst high sulphur fuel oil (HSFO) was pegged at a discount of $1.50 a ton, largely stable from the previous day amid thin trade and with supply still ample.

In tenders, India’s HPCL offered more HSFO for loading in September, based on industry sources.

Margins were steady to higher day-on-day. VLSFO crack (LFO05SGBRTCMc1) closed higher at a premium of around $9.40 a barrel, while HSFO crack (FO380BRTCKMc1) remained near a discount of about $5 a barrel.

FUJAIRAH DATA
– Fujairah heavy fuel inventories (FUJHD04) rose 5.6% to 6.46 million barrels (1.02 million tons) in the week to Aug. 25, FOIZ data published by S&P Global Commodity Insights showed.

OTHER NEWS
– Oil prices steadied on Wednesday, after falling in the previous session, as investors watched for fresh developments in the Ukraine war and weighed an industry report that showed a drop in U.S. crude inventories.
– Russia has revised up its crude oil export plan from western ports by 200,000 barrels per day in August from the initial schedule after Ukrainian drone attacks disrupted refinery operations and freed up more crude for shipment, three people familiar with the matter said.
– Saudi Arabia and India were the top destinations for Russian seaborne fuel oil and vacuum gasoil exports in July, traders said and LSEG data shows.
– Vietnam is planning to switch completely to ethanol-blended gasoline from next year, opening up the possibility for the Southeast Asian country to import more ethanol and corn from the United States.

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

Source: Reuters