Spot trading momentum for fuel oil slowed on Wednesday following several sessions of brisk activity, with the high sulphur fuel oil (HSFO) market finding a floor after its recent declines.

The Singapore 380-cst HSFO cash differential rebounded to a discount narrower than $7 a metric ton, after hitting a multi-year low in the previous session.

Meanwhile, cash differential for very low sulphur fuel oil (VLSFO) was pegged near parity, broadly stable from the previous session.

Downstream bunker premiums for VLSFO were at premiums below $10 a ton over cargo quotes as of Wednesday, slightly softer from the previous week, based on data from market sources.

Cracks for both HSFO and VLSFO traded lower from the previous day amid supported crude prices. VLSFO’s crack dipped below a premium of $4 a barrel, while 380-cst HSFO’s crack closed near a discount of $7.85 a barrel, data compiled by LSEG showed.

INVENTORY DATA

– Fujairah heavy fuel inventories rose 11.9% to 12.5 million barrels (1.97 million tons) in the week to December 1, showed FOIZ data published by S&P Global Commodity Insights.

OTHER NEWS

– Oil prices slipped for a second consecutive session on Wednesday, as traders awaited the outcome of Russia-Ukraine peace talks that could boost supply.

– U.S. crude oil stockpiles were expected to have fallen last week, while distillate and gasoline inventories likely rose, an extended Reuters poll showed on Tuesday.

– Motiva Enterprises plans to perform maintenance on a coker in December of this year and overhaul the large crude distillation unit in September 2026 at its 640,500 barrel-per-day Port Arthur, Texas refinery, said people familiar with plant operations.

– Valero Energy plans to perform upgrades to the large crude distillation unit at its 380,000 barrel-per-day Port Arthur, Texas refinery in February, said people familiar with the plant’s operations.

WINDOW TRADES

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