Margins for high sulphur fuel oil and very low sulphur fuel oil posted weekly declines in Asia as of Friday, while spot differentials were broadly stable from the previous session, with the market eyeing some more regional tenders.

The August 380-cst HSFO/Brent crack (FO380BRTCKMc1) closed at a discount of about $4 a barrel, while the VLSFO/Brent crack (LFO05SGBRTCMc1) closed at a premium near $9.30 a barrel. Both were down about 4% from the previous week, based on LSEG data.

More tenders for August-loading supplies closed on Friday, according to market sources.

South Korea’s S-Oil offered two cargoes of slurry and two cargoes of light cycle oil for loading from Onsan in August, while India’s BPCL offered a cargo of HSFO for loading from Mumbai, according to sources and shipping fixtures.

Window trade was quiet for spot 380-cst HSFO. The product’s cash differential was pegged at a discount wider than $6 a metric ton by the end of the week. Meanwhile, the cash differential for VLSFO traded at a premium of $4.50 a ton.

INVENTORY DATA

– ARA fuel oil inventories (STK-FO-ARA) dipped 2.5% to 0.998 million tons in the week to July 24, based on data from Dutch consultancy Insights Global.

OTHER NEWS

– Oil prices were stable on Friday, as trade talk optimism supported the outlook for both the global economy and oil demand, balancing news of the potential for more oil supply from Venezuela.
– Russia’s Federal Anti-Monopoly Service has launched a probe into Gazprom’s oil product sales business, saying on Friday the company significantly cut gasoline sales on a local exchange.
– South Korea’s S-Oil, whose main shareholder is Saudi Aramco, said on Friday third-quarter regional refining margins are expected to stay supported, led by a seasonal demand uplift from driving and the peak travel season.
– Indian refiner Nayara Energy has named a new chief executive after its previous CEO resigned following European Union sanctions that targeted the company, four sources with knowledge of the matter said on Friday.

WINDOW TRADES

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