Asia’s spot discounts for high sulphur fuel oil (HSFO) deepened on Thursday, while very low sulphur fuel oil (VLSFO) market was largely stable.

Singapore 380-cst HSFO traded at a wider discount of $3.50 a metric ton to cargo quotes. The prompt market remains well-supplied, leading to a slew of offers from various trade participants.

Meanwhile, trading momentum for VLSFO remained thin, as bids and offers were stuck in a stand-off as with previous sessions.

High inventories of fuel oil in the Singapore storage hub continued to limit recovery in the markets.

Inflows into onshore tanks rose week-on-week, with Brazil, Russia and the United Arab Emirates as the top origins for supply.

Meanwhile, fuel oil cracks remained under pressure. VLSFO crack (LFO05SGBRTCMc1) held near a premium of $4 a barrel, while 380-cst HSFO crack (FO380BRTCKMc1) fell to a discount wider than $8.50 a barrel, data compiled by LSEG showed.

INVENTORY DATA

– Singapore residual fuel inventories (STKRS-SIN) inched up 0.8% to 24.71 million barrels (about 3.89 million metric tons) in the week to November 26, Enterprise Singapore data showed.

OTHER NEWS

– Oil prices inched down on Thursday on expectations of a Ukraine-Russia ceasefire which could pave the way for the unwinding of Western sanctions against Russian supply.

– Independent refiners in China have received their first batch of crude oil import quotas for 2026 that can be used for cargoes arriving by the end of the year, multiple trade sources said on Thursday.

– Pakistan’s annual fuel oil exports hit an all-time high this year and are expected to trend steady to higher next year, as higher domestic taxes deterred purchases while power plants are switching to cleaner alternatives, industry sources said.

– Mexican state energy company Pemex pumped less crude oil and condensate in October year-on-year, or 1.64 million barrels per day (bpd), although it refined more at home, data showed.
Source: Reuters