Asia’s fuel oil markets were little changed on Monday, with trade largely thin for key grades, though a stream of bids and offers continued to emerge as with the previous week.
Benchmarks for the very low sulphur fuel oil market held broadly stable. The cash differential was steady near 65 cents a metric ton, while the product’s margin closed at a premium of $7.63 a barrel.
Meanwhile, the market structure for 380-cst high sulphur fuel oil (HSFO) firmed in volatile trading, though spot differential hovered near parity to cargo quotes.
The crack for 380-cst HSFO closed at a discount of about $4 a barrel, stable from the previous session.
India’s HPCL offered more fuel oil for October, shipping records showed. The refiner offered 33,000 tons of HSFO for loading between October 24 and 26, via its latest tender, which closes on October 7.
REFINERY UPDATES
– Malaysia’s Pengerang Refining Company (PRefChem) shut both of its residual fluid catalytic cracking (RFCC) units last week, two sources familiar with the matter said, while it continued to offer residual fuel via tender.
WINDOW TRADES
– 180-cst HSFO: One trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters
