Asia’s spot differential for very low sulphur fuel oil (VLSFO) slipped into a discount on Tuesday after recovering to premiums for less than two weeks.
The Singapore VLSFO cash differential was pegged at a discount of 25 cents a metric ton to cargo quotes, reflecting softer offers for December loading dates.
The market has also sunken back into a steeper contango for the prompt trading months between December and January.
Total supply inflows to East Asia exceeded 6 million tons for this month, higher than the previous one which saw about 5 million tons, per calculations based on LSEG ship-tracking data.
The influx was led by strong volumes from various regions, including the Middle East, as well as arbitrage and regional barrels.
Meanwhile, fuel oil cracks extended declines. December VLSFO crack (LFO05SGBRTCMc1) slipped to a premium of around $4.25 a barrel, while 380-cst HSFO crack (FO380BRTCKMc1) closed at a discount of nearly $8.75 a barrel, logging a sharp drop day-on-day.
REFINERY UPDATES
– Russia’s Black Sea port of Tuapse resumed oil product exports last week after a two-week suspension following Ukrainian drone attacks, while the local oil refinery has restarted processing crude, according to two industry sources and LSEG data.
Source: Reuters
