Asia’s very low sulphur fuel oil (VLSFO) market continued to weaken on Friday, while the hi-5 spread narrowed from the previous week.

Singapore cash premium for VLSFO traded lower at $1 a metric ton for mid-August loading dates, while spot offers for dates into late-August were also steady to softer.

The broader market is still underpinned by supply pressure, with Asia set to receive ample arbitrage cargoes for August.

Spot benchmarks for 380-cst high sulphur fuel oil (HSFO) held rangebound in discounts amid thin trade, even as more bids and offers emerged for August loading.

A weaker VLSFO market has weighed on the hi-five in recent sessions, with the spread (FO05-380SGMc1) closing at $82 a metric ton on Friday, crunching week-on-week, LSEG data showed.

INVENTORY DATA

– ARA fuel oil inventories (STK-FO-ARA) fell 1.7% to 0.98 million tons in the week to July 31, based on data from Dutch consultancy Insights Global.

OTHER NEWS

– Oil prices were little changed on Friday and heading for a weekly gain, as investors weighed the impact of further tariffs and sanctions by U.S. President Donald Trump.
– Pakistan’s largest refiner Cnergyico will import 1 million barrels of oil from Vitol in October, its Vice Chairman Usama Qureshi told Reuters on Friday, marking the country’s first-ever purchase of U.S. crude following a landmark trade deal.
– U.S. refiner Phillips 66 was ordered to pay biofuel maker Propel Fuels $800 million in damages for stealing trade secrets to build up its renewable-fuel capabilities, according to a California state court document.
– State-owned Kuwait Petroleum Corporation posted a net profit of 1.366 billion dinars ($4.47 billion) for the fiscal year ended March 31, down 5.8% year-on-year according to Reuters calculations based on the company’s latest annual report.

WINDOW TRADES

– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: One trade
Source: Reuters