Asia Fuel Oil-VLSFO spot premium slides to three-month low
SINGAPORE, Nov 22 (Reuters) -Asia's spot premium for very low sulphur fuel oil (VLSFO) slipped to a three-month low on Friday, weighed by ample prompt supply in the market.
The Singapore VLSFO cash premium was pegged below $4.50 a metric ton, while backwardation continued to narrow at the prompt trading months.
Meanwhile, the hi-5 fuel oil spread narrowed for a third consecutive week, based on LSEG data.
The December hi-5 spread FO05-380SGMc1 closed at $109.63 a metric ton on Friday, narrowing 2% week-on-week.
The 380-cst high sulphur fuel oil (HSFO) held to its current levels, even though further gains were capped by heavy incoming cargo arrivals into December.
Refining margins for the low-sulphur and high-sulphur grades trended in opposite directions on Friday.
VLSFO cracks for December LFO05SGDUBCMc1 dipped day-on-day to premiums below $12.50 a barrel, while 380-cst HSFO cracks FO380DUBCKMc1 firmed to discounts narrower than $5.50 a barrel, showed LSEG data at 0830 GMT.
INVENTORY DATA
- Fuel oil inventories in the ARA STK-FO-ARA fell 4.1% to 1.22 million tons in the week to Nov. 21, data from Dutch consultancy Insights Global showed.
OTHER NEWS
- Oil prices were on track for a weekly rise on Friday as the Ukraine war intensified, with Russian President Vladimir Putin warning of a global conflict. O/R
- The United States imposed new sanctions on Russia's Gazprombank on Thursday, the Treasury Department said, as President Joe Biden steps up actions to punish Moscow for its invasion of Ukraine before he leaves office in January.
- Chinese refiner Rongsheng Petrochemical has purchased a total of 2.65 million barrels of heavy crude oil from the Americas for February delivery, according to trade sources on Friday.
- Several ships in Singapore and Rotterdam reported operational problems in recent months after using marine fuel blended with cashew nutshell liquid biofuel, fuel testing agency CTI-Maritec said in an advisory.
WINDOW TRADES O/AS
- 180-cst HSFO: No trade
- 380-cst HSFO: No trade
- 0.5% VLSFO: One trade
ASSESSMENTS
FUEL OIL | ||||
CASH ($/T) | ASIA CLOSE | CHANGE | PREV CLOSE | RIC |
Cargo - 0.5% VLSFO | 552.36 | 4.42 | 547.94 | MFO05-SIN |
Diff - 0.5% VLSFO | 4.40 | -1.05 | 5.45 | MFO05-SIN-DIF |
Cargo - 180cst | 459.31 | 11.06 | 448.25 | FO180-SIN |
Diff - 180cst | 10.75 | -1.00 | 11.75 | FO180-SIN-DIF |
Cargo - 380cst | 452.32 | 13.05 | 439.27 | FO380-SIN |
Diff - 380cst | 13.50 | 0.25 | 13.25 | FO380-SIN-DIF |
Bunker (Ex-wharf) Premium - 380cst | 13.75 | 0.25 | 13.50 | |
Bunker (Ex-wharf) Premium - 0.5% VLSFO | 10.00 | 0.00 | 10.00 |
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 Krishna Chandra Eluri
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
