Asia’s high sulphur fuel oil (HSFO) market strengthened at the end of the week as firmer bids emerged, even though a year-end trading lull has set in.

Singapore’s 380-cst HSFO differential was pegged higher on Friday amid bids seen at narrower discounts to cargo quotes, while contango also narrowed from the previous day.

However, the ex-wharf bunker market remained weak with offers seen near parity to cargo quotes, while tepid demand continued for the delivered bunker market this week, sources said.

Meanwhile, very low sulphur fuel oil (VLSFO) was little changed in thin activity, though prompt-month contango narrowed.

Cracks logged weekly gains. The VLSFO crack (LFO05SGBRTCMc1) closed at a premium near $4.30 a barrel on Friday, while 380-cst HSFO crack (FO380BRTCKMc1) was at a discount at about $8.10 a barrel, data compiled by LSEG showed.

INVENTORY DATA

– ARA fuel oil inventories (STK-FO-ARA) rose 10.5% to 1.13 million tons in the week to December 11, based on data from Dutch consultancy Insights Global.

OTHER NEWS

– Oil prices rose on Friday supported by concerns of Venezuelan supply disruptions, though they remained on track for a weekly drop amid cautious market sentiment and optimism over the prospects for a Russia-Ukraine peace deal.
– The U.S. is preparing to intercept more ships transporting Venezuelan oil following the seizure of a tanker this week, as it increases pressure on Venezuelan President Nicolas Maduro, six sources familiar with the matter said.
– World oil supply will match demand closely in 2026, OPEC data published on Thursday indicated, an outlook contrasting with projections from the International Energy Agency and others of a huge glut.
– The International Energy Agency trimmed its forecast of next year’s global oil supply glut for the first time since May on Thursday, flagging higher demand prospects due to a stronger world economy and lower supply from nations under sanctions.

WINDOW TRADES

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