Asia Fuel Oil-VLSFO extends climb; some regional tenders underway
SINGAPORE, Oct 14 (Reuters) - Asia's very low sulphur fuel oil (VLSFO) market extended gains on Monday, with cash premiums for November loading cargoes rising above $10 a metric ton, while a few tenders for regional supplies were underway.
However, the recent strength is unlikely to sustain due to a recovery in supplies, including finished grades and blendstocks, market sources said. Arbitrage supplies are expected to pick up this month, LSEG ship-tracking data showed.
Refining margins for VLSFO softened, with November cracks closing lower versus last week, at premiums of about $13.50 a barrel. LFO05SGDUBCMc1
Indonesia's Pertamina offered more residual fuel for loading towards late November via a tender that closes on Tuesday, based on market sources.
This includes a cargo of low-sulphur marine fuel oil from Sungai Pakning and a cargo of low-sulphur waxy residue from Dumai, both of 200,000 barrels each.
Separately, Pakistan's PARCO offered 50,000 tons of high-sulphur fuel oil for loading from Karachi, while Vietnam's Nghi Son offered a fuel oil cargo of 10,000 tons. Both tenders close on Monday.
SINGAPORE BUNKER SALES
Sales of bunker fuel at Singapore dropped for a second consecutive month in September, though marine biofuel sales surged to a fresh record high, data from the Maritime and Port Authority of Singapore showed on Monday.
Volumes for conventional marine fuels mostly dropped from the previous month, though marine gasoil sales trended higher in contrast to residual fuel volumes as a narrower price spread between gasoil and fuel oil in September drove higher uptake.
Meanwhile, biofuel sales rose to a fresh record high, breaching 100,000 tons per month for the first time ever.
Higher term volumes lifted by a European shipowner have driven volumes up in September, though spot demand also picked up in September due to competitive offers, market sources said.
OTHER NEWS
- Oil prices on Monday wiped out all of last week's gains as China's stimulus plans failed to inspire confidence among investors, while the market remained on edge about potential Israeli attacks on Iranian oil infrastructure. O/R
- China's oil imports fell in September by 0.6% from a year earlier, data showed on Monday, as plants curbed purchases because of weak domestic fuel demand and narrowing export margins.
- Kuwait has raised the official selling price for Kuwait Export Crude to Asia in November to $1 a barrel above the average of Oman/Dubai quotes, up 85 cents from the previous month, a price document reviewed by Reuters showed on Monday.
- South Korean conglomerate Hanwha Group on Monday raised its offer for the remaining stake it does not already own in Singapore's Dyna-Ma, valuing the offshore oil and gas contractor at S$790.6 million ($605.41 million).
WINDOW TRADES O/AS
- 180-cst HSFO: No trade
- 380-cst HSFO: No trade
- 0.5% VLSFO: One trade
ASSESSMENTS
FUEL OIL | ||||
CASH ($/T) | ASIA CLOSE | CHANGE | PREV CLOSE | RIC |
Cargo - 0.5% VLSFO | 587.50 | -7.34 | 594.84 | MFO05-SIN |
Diff - 0.5% VLSFO | 10.85 | 2.30 | 8.55 | MFO05-SIN-DIF |
Cargo - 180cst | 470.21 | -1.83 | 472.04 | FO180-SIN |
Diff - 180cst | 8.50 | 0.25 | 8.25 | FO180-SIN-DIF |
Cargo - 380cst | 454.15 | -1.29 | 455.44 | FO380-SIN |
Diff - 380cst | 6.35 | 0.30 | 6.05 | FO380-SIN-DIF |
Bunker (Ex-wharf) Premium - 380cst | 13.00 | 0.00 | 13.00 | |
Bunker (Ex-wharf) Premium - 0.5% VLSFO | 12.00 | 0.00 | 12.00 |
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 Varun H K
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