The spot differential for very low sulphur fuel oil (VLSFO) in Asia rose for a fifth trading session, while the market structure recovered further.

The cash differential for Singapore VLSFO traded at $3 a metric ton on Wednesday, up from $1 in the previous session.

Despite the uptick, Asia’s incoming fuel oil supplies are expected to be higher for January compared to December, based on ship-tracking data from LSEG.

Discounts for high sulphur fuel oil (HSFO) were little changed on Wednesday, with bids and offers in a tight range.

Meanwhile, cracks rebounded on Wednesday after declining on Tuesday. The February 380-cst HSFO/Brent crack (FO380BRTCKMc1) rose to a discount nearly $7.40 a barrel, while VLSFO crack (LFO05SGBRTCMc1) was at a premium of around $3.30 a barrel.

INVENTORY DATA

– Fujairah heavy fuel inventories (FUJHD04) rose 12.8% to 10.04 million barrels (1.58 million tons) in the week to January 12, FOIZ data published by S&P Global Commodity Insights showed.

OTHER NEWS

– Oil slipped on Wednesday after four days of gains as Venezuela resumed exports and U.S. crude and product inventories rose, though fears of Iranian supply disruptions due to deadly civil unrest loomed over the market.

– Vietnam’s largest refinery, Nghi Son Refinery and Petrochemical LLC, has processed the first batch of non-Kuwaiti crude oil, the company said on Wednesday, as it seeks to diversify its feedstocks.

– Indian Oil Corp bought its first Ecuadorean Oriente crude cargo for end-March delivery via a tender, two trade sources said, as the country’s top refiner expands its oil sourcing to partly replace some Russian oil.

– China’s oil imports from Venezuela are expected to slump starting from February as fewer tankers have managed to leave for Caracas’ top crude buyer after the U.S. claimed control of the OPEC producer, traders and analysts said.

WINDOW TRADES

– 180-cst HSFO: No trade

– 380-cst HSFO: No trade

– 0.5% VLSFO: One trade

ASSESSMENTS