Asia’s spot differential for 380-cst high sulphur fuel oil (HSFO) rose slightly on Monday after some trades emerged, though the market continued to hold in a contango for prompt months.

Two deals for 380-cst HSFO came up following a trading lull on the window for two weeks, based on data from market sources. These were done at discounts to cargo quotes, though the benchmark differential firmed slightly.

However, HSFO’s market structure remained steadily in a contango, indicative of ample prompt supply.

Meanwhile, very low-sulphur fuel oil (VLSFO) held range-bound from the previous session, even as its contango narrowed.

Cracks for VLSFO were stable at premiums near $4.25 a barrel in thin trading, while HSFO cracks (FO380BRTCKMc1) dipped to discounts of about $7 a barrel, LSEG data showed on Monday.

CHINA DATA

China’s imports of fuel oil rose 15% from a month earlier to 2.15 million metric tons in November, customs data showed.

Meanwhile, China’s exports of fuel oil, mostly for low-sulphur marine fuel bunkering, climbed 29% month-on-month to 1.58 million metric tons in November.

OTHER NEWS

– Oil prices rose on Monday after officials said the U.S. had intercepted an oil tanker in international waters off the coast of Venezuela, raising fresh supply uncertainty.
– Chinese oil major CNOOC Ltd said on Monday that an offshore oil project in the South China Sea had commenced production.
– Indonesia announced a round of oil and gas block tenders on Monday, offering eight new blocks to contractors, an energy ministry document showed, amid efforts to increase energy reserves.
– A Ukrainian drone attack damaged two vessels, two piers and sparked a fire in a village on the Black Sea coast in Russia’s Krasnodar region, regional authorities said on Monday.

WINDOW TRADES

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