Asia Fuel Oil-Hi-5 posts weekly decline as VLSFO weakens while HSFO holds strength
SINGAPORE, Nov 15 (Reuters) -Asia's hi-5 fuel oil spread narrowed week-on-week, led by softer benchmarks for 0.5% low sulphur fuel oil (VLSFO), while the 380-cst high sulphur fuel oil (HSFO) market firmed in contrast.
The balance-November hi-5 FO05-380SGMc0 closed at $105.35 a metric ton on Friday, based on LSEG data at 0830 GMT, narrowing more than 10% from last week. Meanwhile, December hi-5 FO05-380SGMc1 narrowed about 8% week-on-week to $111.31 a ton.
VLSFO came under pressure this week on the back of recovering supplies, with inventories extending a rebound at the Singapore hub after a dive in late October. In contrast, HSFO retained strength as some prompt supply tightness lingered, trade sources said.
In the downstream bunker market, Singapore premiums of delivered marine fuel have weakened for both VLSFO and HSFO grades this week.
Premiums of delivered VLSFO dropped to about $15 a ton to Singapore cargo quotes this week, compared with about $20 last week, based on data from sources. Meanwhile, delivered 380-cst HSFO bunker premiums fell to about $20 this week, versus $25-$30 the previous week.
INVENTORY DATA
- Fuel oil inventories in the ARA STK-FO-ARA gained 0.6% to 1.27 million tons in the week to Nov. 14, data from Dutch consultancy Insights Global showed.
OTHER NEWS
- Oil prices fell on Friday on signs that demand in China, the world's biggest crude importer, continues to underperform amid its uneven economic recovery. O/R
- China's refinery throughput in October fell 4.6% from last year, down from a year earlier for a seventh month, as plant closures offset the ramp-up of a newly started complex and demand from holiday travel, official data showed on Friday.
- Naphtha is expected to remain in short supply in Asia over the next couple of years as more crackers come online and as demand for blending the fuel with gasoline rises, industry executives and analysts said.
- Top U.S. refiners kept focused on shareholder returns with hefty stock buybacks and dividends in the third quarter, even though profits fell due to weakening fuel demand and refining margins.
WINDOW TRADES O/AS
- 180-cst HSFO: One trade
- 380-cst HSFO: No trade
- 0.5% VLSFO: No trade
ASSESSMENTS
FUEL OIL | ||||
CASH ($/T) | ASIA CLOSE | CHANGE | PREV CLOSE | RIC |
Cargo - 0.5% VLSFO | 540.22 | -4.65 | 544.87 | MFO05-SIN |
Diff - 0.5% VLSFO | 8.00 | -0.25 | 8.25 | MFO05-SIN-DIF |
Cargo - 180cst | 449.64 | -5.97 | 455.61 | FO180-SIN |
Diff - 180cst | 14.80 | 3.80 | 11.00 | FO180-SIN-DIF |
Cargo - 380cst | 434.76 | -10.65 | 445.41 | FO380-SIN |
Diff - 380cst | 12.50 | -0.25 | 12.75 | FO380-SIN-DIF |
Bunker (Ex-wharf) Premium - 380cst | 14.00 | -0.50 | 14.50 | |
Bunker (Ex-wharf) Premium - 0.5% VLSFO | 12.00 | -0.50 | 12.50 |
For a list of derivatives prices, please refer to ENSWAP/INFO or the RICs below: | |
180cst M1 | FO180SGSWMc1 |
180cst M1/M2 | FO180SGSDMc1 |
380cst M1 | FO380SGSWMc1 |
380cst M1/M2 | FO380SGSDMc1 |
0.5% VLSFO M1 | LFO05FSGMc1 |
0.5% VLSFO M1/M2 | LFO05FSGSMc1 |
Cracks 180cst-Brent M1 | FO180BRTCKMc1 |
Cracks 180cst-Dubai M1 | FO180SGCKMc1 |
Cracks 380cst-Brent M1 | FO380BRTCKMc1 |
Cracks 380cst-Dubai M1 | FO380DUBCKMc1 |
Cracks 0.5% VLSFO-Brent M1 | LFO05SGBRTCMc1 |
Cracks 0.5% VLSFO-Dubai M1 | LFO05SGDUBCMc1 |
Visco 180cst/380cst M1 | FOVISSGDFMc1 |
Hi-5 0.5% VLSFO/380cst M1 | FO05-380SGMc1 |
GoFo 10PPM/0.5% VLSFO M1 | GO10FO05FSGMc1 |
East-West M1 | FOSGEWMc1 |
Barges M1 | HFOFARAAMc1 |
Barges M1/M2 | HFOFARAASMc1 |
Crack Barges-Brent M1 | HFOFARAACMc1 |
Reporting by Jeslyn Lerh; Editing by Vijay Kishore
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