Trading momentum in Asia’s spot fuel oil market was largely thin on Thursday, with key benchmark differentials holding steady from the previous session, though onshore inventories eased.

Singapore’s residual fuel inventories fell after climbing for three weeks, though stock levels remained well above average, based on data from Enterprise Singapore.

Indonesia was the top origin of the imports recorded for a second consecutive week. The country’s state refiner, Pertamina, had also closed some tenders for January cargoes.

In other tenders, Indian refiner HPCL offered 33,000 tons of high-sulphur fuel oil (HSFO) for loading from Mumbai between January 5 and 7, based on market sources. The tender closes on Friday.

As for the derivatives market, fuel oil cracks were also little changed in quieter year-end trading.

The 380-cst HSFO crack for January (FO380BRTCKMc1) closed at a discount near $6 a barrel on Thursday, showed LSEG data, while crack for very low sulphur fuel oil (VLSFO) (LFO05SGBRTCMc1) was also steady, closing at a premium near $4.35 a barrel.

INVENTORY DATA

– Singapore residual fuel inventories (STKRS-SIN) fell 5.4% week-on-week to 24.66 million barrels (about 3.88 million metric tons) in the week to December 17, Enterprise Singapore data showed.
– Fujairah heavy fuel inventories (FUJHD04) fell 17.4% to 10.68 million barrels (1.68 million tons) in the week to December 15, showed FOIZ data published by S&P Global Commodity Insights.

OTHER NEWS

– Oil prices rose on Thursday following reports that the U.S. was preparing new sanctions on Russian oil if Moscow does not agree to a Ukraine peace deal, as market participants assessed the supply risks posed by a blockade of Venezuelan oil tankers.
– China opposed what it said was “unilateral bullying” after Washington ordered a blockade of tankers entering and leaving oil-rich Venezuela, but did not say exactly how it would come to the South American country’s aid or offer any refuge for its embattled leader.
– Shipping companies Hapag-Lloyd and North Sea Container Line have won a tender to use low-emission fuels derived from hydrogen on container ships from 2027 for at least three years to reduce CO2 emissions.
– Oil and gas major BP has appointed Meg O’Neill, the head of Australia’s Woodside Energy, as its next CEO to lead its effort to boost profits and refocus on oil and gas after a detour into renewables.

WINDOW TRADES

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