Spot differentials for Asia fuel oil were broadly unchanged on Tuesday amid thin trading momentum, while market fundamentals retained a bearish tone.

Bids and offers for Singapore 380-cst high sulphur fuel oil (HSFO) continued to prevail at steeper discounts for prompt loading dates versus the later ones.

Meanwhile, spot differential for very low sulphur fuel oil (VLSFO) also hovered at a largely stable discount day-on-day.

Inventories continued to pile higher at key maritime hubs amid lukewarm demand and a contango market structure. Onshore stocks at UAE Fujairah hit their highest in more than eight months, latest data from the Fujairah Oil Industry Zone showed.

Meanwhile, cracks found some support on Wednesday. VLSFO’s crack (LFO05SGBRTCMc1) rose above a premium of $4 a barrel, while 380-cst HSFO’s crack (FO380BRTCKMc1) was stable near a discount of $8.25 a barrel, data compiled by LSEG showed.

INVENTORY DATA

– Fujairah heavy fuel inventories (FUJHD04) rose 11.9% to 12.93 million barrels (2.04 million tons) in the week to December 8, showed FOIZ data published by S&P Global Commodity Insights.

OTHER NEWS

– Oil prices held steady on Wednesday after falling about 1% in the previous session, as investors watched for progress in Russia-Ukraine peace talks and awaited a decision on U.S. interest rates.
– Crude oil exports by Saudi Arabia to China are set to touch a three-month high in January after the kingdom slashed its official selling prices to Asia, sources said on Tuesday.
– U.S. investment bank Xtellus Partners has proposed to the U.S. Treasury that proceeds from the sale of Lukoil’s foreign assets be used to repay American investors who lost money when Russia’s war in Ukraine froze their Lukoil stock holdings, sources said.
– Global commodities trading house Trafigura raised its dividends by 50% to almost $3 billion in 2025, despite a small drop in net profit after a second consecutive year of high impairments.

WINDOW TRADES

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