Asia’s spot differential for very low sulphur fuel oil (VLSFO) inched higher on Monday, though remaining stuck in a discount as regional supply remained ample.

Bids for November-loading VLSFO firmed from the previous session, lifting the Singapore cash differential nearer to $1 a metric ton.

Meanwhile, high sulphur fuel oil (HSFO) markets remained volatile. The market structure for 380-cst HSFO softened into a steeper contango for prompt months, though spot differentials were slightly higher from last week.

Cracks for both grades were also mixed. Singapore’s 380-cst HSFO crack (FO380BRTCKMc1) fell to a discount of around $3.70 a barrel, while VLSFO’s crack (LFO05SGBRTCMc1) rose to a premium near $5.65 a barrel, data compiled by LSEG showed

As for recent tenders, Vietnam’s Nghi Son offered more fuel oil than usual, based on notices on its website.

It offered a rare parcel comprising 50,000 metric tons of straight-run HSFO in a tender that closed on Monday. The cargo is scheduled to load before November 16.

Separately, it is also offering 7,000 tons of fuel oil for loading between November 8 and November 10, in another tender that closes on October 29.

REFINERY UPDATES

– Nigeria’s Dangote Petroleum Refinery plans to more than double its production capacity to 1.4 million barrels per day, up from 650,000 bpd, its owner Aliko Dangote said on Sunday.

OTHER NEWS

– Oil prices fell over 1% on Monday after U.S. and Chinese economic officials sketched out a trade deal framework, easing fears that tariffs and export curbs between the world’s top two oil consumers could dent global economic growth.
– Iraq is in negotiations over the size of its OPEC quota within its available capacity of 5.5 million barrels per day, oil minister Hayan Abdel-Ghani said at an oil conference on Monday.

– Reliance Industries Ltd, the top Indian buyer of Russian oil, will abide by Western sanctions against Moscow while maintaining its relationship with current oil suppliers, its spokesperson said in a statement.
– Singapore’s expansion in advanced manufacturing, technology and electrification of vehicles will accelerate growth in power demand over the next decade, the chief executive of its Energy Market Authority said on Monday.

WINDOW TRADES

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