Spot differential for Asia 380-cst high sulphur fuel oil (HSFO) flipped from a discount into a premium on Wednesday, while prompt market structure remained relatively strong.

Singapore’s 380-cst HSFO cash differential was pegged at a premium of 25 cents a metric ton, after hovering in discounts for more than 14 weeks, pricing data showed.

Some bids for February-loading parcels have been inching higher, while the February/March timespread for 380-cst HSFO continued to hold strong above $7 a metric ton.

Meanwhile, spot premium for very low sulphur fuel oil (VLSFO) was largely rangebound, though bids and offers for prompt loading dates increased day-on-day.

Cracks for fuel oil also trended in mixed directions. HSFO’s crack (FO380BRTCKMc1) was stronger at a discount near $6.40 a barrel, while VLSFO’s crack (LFO05SGBRTCMc1) slipped to a premium of $3.75 a barrel, showed LSEG data.

FUJAIRAH DATA

– Fujairah heavy fuel inventories (FUJHD04) rose 1.4% to 10.18 million barrels (1.60 million tons) in the week to January 19, FOIZ data published by S&P Global Commodity Insights showed.

OTHER NEWS

– Oil prices fell as an expected build-up of U.S. crude inventories outweighed a temporary halt in output at two large fields in Kazakhstan and geopolitical pressure from U.S. threats of tariffs over its bid to gain control of Greenland.
– Indian refiners are buying Middle Eastern oil from the spot markets to partly replace Russian oil, two refining and trade sources said, part of an effort to help New Delhi negotiate a trade deal with Washington.
– Maintenance work on single point mooring-3 at the Caspian Pipeline Consortium’s Russian Black Sea terminal is in its final stages, the CPC said, and it is preparing to dismantle another SPM damaged by a Ukrainian naval drone.
– Global liquefied natural gas output is set to jump this year, easing constraints seen since the 2022 Ukraine war and dampening prices, which could spur demand including from top importers China and India, analysts say.

WINDOW TRADES

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