Asia’s high sulphur fuel oil (HSFO) market extended its weakness on Monday, with spot differentials and prompt market structure holding steadily in discounts.

Trades continued to emerge for 380-cst HSFO at steep discounts near $7 a metric ton to cargo quotes, while contango widened at the prompt months.

The market has been eyeing high supply inflows from the Middle East as well as the region.

In its latest tender, Pakistan’s PARCO offered 50,000 tons of HSFO for mid-December loading from Karachi, based on information from its website as well as industry sources. The tender closes on Tuesday.

Meanwhile, the market for very low sulphur fuel oil (VLSFO) remained thinly traded, with bids and offers rangebound.

Fuel oil cracks were rangebound from last week. The VLSFO crack closed near a premium of $4 a barrel, while the 380-cst HSFO crack was at a discount of about $8 a barrel, data compiled by LSEG showed.

REFINERY UPDATES

– Indian refiners’ crude throughput rose by 6.8% month-on-month in October to 5.50 million barrels per day (22.50 million metric tons), provisional government data showed on Monday.

OTHER NEWS

– Oil prices climbed 2% on Monday after OPEC+ members reaffirmed a plan to hold output steady and as the Caspian Pipeline Consortium halted exports after a major drone attack and U.S.-Venezuela tensions raised concerns about supply.

– Chevron said that loadings of its Tengizchevroil venture’s crude oil were continuing at the Russian port of Novorossiysk following a Ukrainian naval drone attack which heavily damaged key equipment.

– TotalEnergies will sell a 40% stake in two offshore exploration licenses in Nigeria to Chevron, in a move aimed at strengthening collaboration between the French and U.S. energy giants, the company said.

– Ukrainian naval drones hit two sanctioned tankers in the Black Sea as they headed to a Russian port to load up with oil destined for foreign markets, an official said on Saturday, as Kyiv tries to pile pressure on Russia’s vast oil industry.

WINDOW TRADES

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