Spot differentials for the Asia fuel oil market were little changed on Wednesday, though high-sulphur fuel cracks inched higher amid volatile crude prices.

Benchmarks for crude strengthened on the day after U.S. President Donald Trump ordered a total and complete blockade of all sanctioned oil tankers entering and leaving Venezuela.

It was not immediately clear whether this would impact Venezuelan fuel oil trade flows, though exports have been on the decline for months even before this, data from Kpler showed.

In the broader Asia market, spot discussions largely retained a slow pace as with previous sessions.

Singapore’s 380-cst HSFO cash differential was pegged at a discount of $3.25 a metric ton, with some bids and offers narrowing into a range of discounts between $3 and $3.50 a ton.

Meanwhile, very low sulphur fuel oil (VLSFO) held stable near a discount of 33 cents, though contango for prompt months narrowed slightly.

In tenders, Thailand’s PTT offered 35,000 tons of LSFO for loading from Map Ta Phut between January 22 and 24. The tender closes on Thursday, according to market sources.

Cracks were steady to higher from the previous day, with 380-cst HSFO crack (FO380BRTCKMc1) climbing to a discount near $6.20 a barrel, while VLSFO crack (LFO05SGBRTCMc1) was steady at a premium of $4.35 a barrel, based on data by LSEG.

OTHER NEWS

– Oil rose more than 1% on Wednesday after U.S. President Donald Trump ordered a total and complete blockade of all sanctioned oil tankers entering and leaving Venezuela, raising fresh geopolitical tensions at a time of concerns over demand.

– India’s Russian oil imports are poised to top 1 million barrels per day in December, trade and refining sources said, defying expectations for a sharp decline as refiners have resumed buying from non-sanctioned entities offering deep discounts.

– Mexican state oil company Pemex has awarded five of the 11 new joint venture contracts it had planned to ink before the end of the year, according to four sources familiar with the matter and a document seen by Reuters.

– Saudi Arabia’s Midad Energy has emerged as one of the leading contenders to buy Russian oil major Lukoil’s international assets, leveraging deep political ties with Moscow and Washington, three people familiar with the matter said.

WINDOW TRADES

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