Asia Fuel Oil-Spot premiums extend gains while market structure firms
SINGAPORE, July 24 (Reuters) -Spot fuel oil premiums extended gains in Asia on Wednesday, backed by strength in the derivatives market where buying activity gathered pace and led to a firmer market structure, trade sources said.
The backwardation spreads for prompt trading months widened for key fuel oil grades, based on data from LSEG as well as market sources. FO380SGSDMc1, LFO05FSGSMc1
The strength in the derivatives market was largely driven by firmer buying activity from a major trading house, said sources.
Refining margins also rose day-on-day, with 380-cst high sulphur fuel oil cracks hitting discounts of about $4.50 per barrel, while very low sulphur fuel oil cracks closed higher at premiums of around $11.80 per barrel.
INVENTORY DATA
- Fujairah heavy fuel inventories FUJHD04 fell 5.9% to 9.42 million barrels (1.48 million tons) in the week to July 22, showed FOIZ data published by S&P Global Commodity Insights.
OTHER NEWS
- Oil prices traded around their lowest level in six weeks on Wednesday, as the northern hemisphere gets deeper into summer with limited signs of the expected fuel consumption surge the period usually sees. O/R
- The Russian government is considering a ban on exports of diesel due to rising domestic prices, the Kommersant daily reported on Wednesday, citing several unnamed sources.
- Ship owner Hafnia, operator of the Hafnia Nile oil tanker, is in discussion with Singapore's Maritime and Port Authority (MPA) about transferring the damaged ship's cargo of naphtha to a safe location, the MPA said on Wednesday.
- U.S. oil refiners are expected to report sharply lower second-quarter earnings from a year ago after a listless summer driving season that weakened refining margins, energy analysts said.
WINDOW TRADES O/AS
- 180-cst HSFO: No trade
- 380-cst HSFO: No trade
- 0.5% VLSFO: No trade
ASSESSMENTS
FUEL OIL | ||||
CASH ($/T) | ASIA CLOSE | CHANGE | PREV CLOSE | RIC |
Cargo - 0.5% VLSFO | 587.40 | -4.86 | 592.26 | MFO05-SIN |
Diff - 0.5% VLSFO | 6.95 | 0.40 | 6.55 | MFO05-SIN-DIF |
Cargo - 180cst | 491.25 | -2.22 | 493.47 | FO180-SIN |
Diff - 180cst | 7.35 | 0.55 | 6.80 | FO180-SIN-DIF |
Cargo - 380cst | 485.95 | -2.27 | 488.22 | FO380-SIN |
Diff - 380cst | 8.75 | 1.60 | 7.15 | FO380-SIN-DIF |
Bunker (Ex-wharf) Premium - 380cst | 9.00 | 1.00 | 8.00 | |
Bunker (Ex-wharf) Premium - 0.5% VLSFO | 8.00 | 0.00 | 8.00 |
For a list of derivatives prices, including margins, please double click the RICs below. | |
Brent M1 | BRENTSGMc1 |
180cst M1 | FO180SGSWMc1 |
180cst M1/M2 | FO180SGSDMc1 |
180cst M2 | FO180SGSWMc2 |
Visco M1 | FOVISSGDFMc1 |
Visco M2 | FOVISSGDFMc2 |
380cst M1 | FO380SGSWMc1 |
380cst M1/M2 | FO380SGSDMc1 |
380cst M2 | FO380SGSWMc2 |
Cracks 180-Dubai M1 | FO180SGCKMc1 |
Cracks 180-Dubai M2 | FO180SGCKMc2 |
East-West M1 | FOSGEWMc1 |
East-West M2 | FOSGEWMc2 |
Barges M1 | HFOFARAAMc1 |
Barges M1/M2 | HFOFARAASMc1 |
Barges M2 | HFOFARAAMc2 |
Crack Barges-Brent M1 | HFOFARAACMc1 |
Crack Barges-Brent M2 | HFOFARAACMc2 |
Reporting by Jeslyn Lerh; Editing by Shailesh Kuber
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.
