Asia’s fuel oil market was largely steady on Tuesday as activity slowed, though the prompt-month contango for 380-cst high sulphur fuel oil (HSFO) narrowed.

The market continued to keep a lookout on potential longer-term impact arising from geopolitical risks, after the recent U.S. action against ships transporting Venezuelan oil.

Spot differentials for HSFO in Asia continued to hold in discounts, though the market structure firmed slightly.

Meanwhile, very low-sulphur fuel oil (VLSFO) saw range-bound bids and offers.

Prompt cracks for VLSFO were stable at premiums above $4 a barrel, while 380-cst HSFO cracks (FO380BRTCKMc1) held near discounts of $7 a barrel, LSEG data showed.

Separately, South Korea’s S-Oil had offered two cargoes of slurry for loading in January, each of 22,000 tons, according to shipping fixtures data from market sources. The tender closes on Tuesday.

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 Tuesday.

OTHER NEWS

– Oil prices were little changed on Tuesday as traders weighed geopolitical risks against bearish fundamentals, after the U.S. signaled it might sell the Venezuelan crude it has seized while Ukraine’s attacks on Russian vessels and piers heightened fears of supply disruption.
– Tanker loading in Venezuela dwindled on Monday, with most ships moving oil cargoes only between domestic ports following U.S. action against two more ships and as state-run energy company PDVSA struggles to recover from a cyberattack, according to tracking data and sources.
– Russia’s pipeline exports of natural gas to China are expected to have risen by a quarter this year, a source familiar with the data told Reuters on Monday, as Moscow ramps up sales to Asia and cements ties with the world’s largest energy consumer.
– The Trump administration suspended leases on Monday for five large offshore wind projects that are under construction off the U.S. East Coast over what it called national security concerns, sending shares of offshore wind companies plunging.

WINDOW TRADES

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