Asia Fuel Oil-VLSFO premium treks higher but capped by supply uptick
SINGAPORE, Oct 22 (Reuters) -Spot premium for 0.5% low sulphur fuel oil (VLSFO) continued to trek higher on Tuesday amid firmer-priced bids, though gains were capped by a recovery in broader supplies this month.
Singapore VLSFO cash premium was pegged at $8.05 a metric ton, with bids inching upwards for loading dates in November, while backwardation between November and December also widened.
Meanwhile, cash premium for 380-cst high sulphur fuel oil (HSFO) was stable at $7.25 a metric ton on the back of rangebound bids and offers.
The uptick in cargo arrivals and blendstocks for October is expected to keep the broader supply pool ample into next month, based on ship-tracking data and industry sources.
Total supply of fuel oil landing in Asia is expected to breach 7 million tons this month for the first time since April, calculations based on LSEG ship-tracking data showed.
REFINERY UPDATES REF/OUT
- Iraq's Kerbala refinery will resume operations on Tuesday after completing maintenance works, the oil ministry said.
- U.S. oil refiners are expected to have about 819,000 barrels per day of capacity offline in the week ending Oct. 25, raising available refining capacity by 192,000 bpd, research company IIR Energy said.
OTHER NEWS
- Brent prices steadied near $74 a barrel on Tuesday as the top U.S. diplomat renewed efforts to push for a ceasefire in the Middle East and as slowing demand growth in China, the world's top oil importer, continued to weigh. O/R
- China has set crude oil import quota for non-state-owned firms at 257 million metric tons (5.14 million barrels per day) for 2025, the commerce ministry said on Tuesday.
- Nigeria has blocked Shell's sale of its entire onshore and shallow-water oil operations, but approved a similar deal by Exxon Mobil, the country's upstream oil regulator said.
- The next wave of liquefied natural gas supply will come online from 2027, later than the earlier forecast of 2025, due to project delays, TotalEnergies' Senior Vice President for LNG Gregory Joffroy said on Tuesday.
WINDOW TRADES O/AS
- 180-cst HSFO: No trade
- 380-cst HSFO: No trade
- 0.5% VLSFO: No trade
ASSESSMENTS
FUEL OIL | ||||
CASH ($/T) | ASIA CLOSE | CHANGE | PREV CLOSE | RIC |
Cargo - 0.5% VLSFO | 562.83 | 5.53 | 557.30 | MFO05-SIN |
Diff - 0.5% VLSFO | 8.05 | 0.30 | 7.75 | MFO05-SIN-DIF |
Cargo - 180cst | 460.55 | 8.85 | 451.70 | FO180-SIN |
Diff - 180cst | 12.05 | 3.80 | 8.25 | FO180-SIN-DIF |
Cargo - 380cst | 441.03 | 5.95 | 435.08 | FO380-SIN |
Diff - 380cst | 7.25 | 0.00 | 7.25 | FO380-SIN-DIF |
Bunker (Ex-wharf) Premium - 380cst | 14.00 | 0.00 | 14.00 | |
Bunker (Ex-wharf) Premium - 0.5% VLSFO | 14.50 | 0.50 | 14.00 |
For a list of derivatives prices, please refer to ENSWAP/INFO or the RICs below: | |
180cst M1 | FO180SGSWMc1 |
180cst M1/M2 | FO180SGSDMc1 |
380cst M1 | FO380SGSWMc1 |
380cst M1/M2 | FO380SGSDMc1 |
0.5% VLSFO M1 | LFO05FSGMc1 |
0.5% VLSFO M1/M2 | LFO05FSGSMc1 |
Cracks 180cst-Brent M1 | FO180BRTCKMc1 |
Cracks 180cst-Dubai M1 | FO180SGCKMc1 |
Cracks 380cst-Brent M1 | FO380BRTCKMc1 |
Cracks 380cst-Dubai M1 | FO380DUBCKMc1 |
Cracks 0.5% VLSFO-Brent M1 | LFO05SGBRTCMc1 |
Cracks 0.5% VLSFO-Dubai M1 | LFO05SGDUBCMc1 |
Visco 180cst/380cst M1 | FOVISSGDFMc1 |
Hi-5 0.5% VLSFO/380cst M1 | FO05-380SGMc1 |
GoFo 10PPM/0.5% VLSFO M1 | GO10FO05FSGMc1 |
East-West M1 | FOSGEWMc1 |
Barges M1 | HFOFARAAMc1 |
Barges M1/M2 | HFOFARAASMc1 |
Crack Barges-Brent M1 | HFOFARAACMc1 |
Reporting by Jeslyn Lerh; Editing by Shreya Biswas
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.