Asia Fuel Oil-Spot premiums stable, margins gain for second week
SINGAPORE, Oct 18 (Reuters) -Spot premiums for fuel oil were little changed on Friday, though refining margins for high-sulphur and low-sulphur grades logged increases for a second straight week.
The strength in the cracks was driven by a downtrend in crude prices, which were headed for their biggest weekly loss in more than a month.
Front-month Dubai cracks for 380-cst high sulphur fuel oil (HSFO) closed at discounts of about $5.15 a barrel on Friday, up 28% from last week, based on LSEG's data.
Meanwhile, 0.5% low sulphur fuel oil (VLSFO) cracks LFO05SGDUBCMc1 closed at premiums of $14.18 a barrel, inching 1% higher from the previous week.
Despite the stronger performance in margins, spot benchmarks have recently pared due to recovering supplies to Asia, according to trade sources.
Meanwhile, bunker premiums held rangebound from the previous week amid a lack of fresh drivers, sources said.
ARA INVENTORIES
- Fuel oil inventories in the ARA STK-FO-ARA rose 3.3% at 1.28 million tons in the week to Oct. 17, data from Dutch consultancy Insights Global showed.
OTHER NEWS
- Oil futures steadied on Friday, though prices were headed for their biggest weekly loss in more than a month. O/R
- China and Saudi Arabia were the top destinations for Russian seaborne fuel oil and vacuum gasoil exports in September, traders said and LSEG data showed.
- Northeast Asian refiners sold November-loading ultra low-sulphur diesel at the narrowest discounts since the start of the year as supply has tightened due to lower regional output, trade sources said.
- Nigerian fuel traders are ramping up petrol imports to augment supply from the Dangote Refinery following worsening fuel queues, the head of a local traders group said.
WINDOW TRADES O/AS
- 180-cst HSFO: No trade
- 380-cst HSFO: No trade
- 0.5% VLSFO: No trade
ASSESSMENTS
FUEL OIL | ||||
CASH ($/T) | ASIA CLOSE | CHANGE | PREV CLOSE | RIC |
Cargo - 0.5% VLSFO | 563.07 | 2.81 | 560.26 | MFO05-SIN |
Diff - 0.5% VLSFO | 7.35 | -0.15 | 7.50 | MFO05-SIN-DIF |
Cargo - 180cst | 457.43 | 4.37 | 453.06 | FO180-SIN |
Diff - 180cst | 8.00 | 0.25 | 7.75 | FO180-SIN-DIF |
Cargo - 380cst | 439.94 | 3.57 | 436.37 | FO380-SIN |
Diff - 380cst | 6.65 | -0.10 | 6.75 | FO380-SIN-DIF |
Bunker (Ex-wharf) Premium - 380cst | 13.50 | 0.50 | 13.00 | |
Bunker (Ex-wharf) Premium - 0.5% VLSFO | 13.50 | 0.50 | 13.00 |
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 Devika Syamnath
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.
