Asia’s cash premium for very low sulphur fuel oil (VLSFO) rose on Monday after bids for spot cargoes firmed for loading dates in the second half of November.
The premium gained at $17.25 a metric ton, while refining margins climbed to a premium of $11.81 a barrel at the Asia close.
Total supplies to Asia could tighten slightly amid a drop in Kuwait’s Al Zour fuel oil exports, leading to some support in the VLSFO market, industry sources said.
In contrast, high sulphur fuel oil (HSFO) remained under downward pressure, with cash differentials FO380-SIN-DIF stuck in discounts since last week, while margins fell further.
The 380-cst HSFO crack FO380DUBCKMc1 slipped to a discount of $18 a barrel on Monday, holding at eight-month lows.
OTHER NEWS
– Oil slipped on Monday as concerns eased about the Israel-Hamas war affecting supply from the region, while investors adopted caution ahead of this week’s U.S. Federal Reserve meeting and otherindications of global economi health.
– South Korea’s S-Oil on Monday said regional refining margins are projected to remain solid thanks to winter demand, given low global inventories and limited supply potential.
– Asia’s largest oil and gas producer PetroChina Co Ltd reported 21% year-on-year growth in third-quarter net profit, as higher production and improving domestic fuel demand offset lower realised oil and gas prices.
– Malaysia’s Gentari, a renewable energy unit of Petronas, and Singapore sovereign wealth fund GIC on Monday signed an agreement to produce up to 5 million metric tons per annum of green ammonia in India by 2030.
WINDOW TRADES O/AS
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Devika Syamnath)