Asia’s high sulphur fuel oil (HSFO) market extended its weakness on Monday, with spot differentials and prompt market structure holding steadily in discounts.
Trades continued to emerge for 380-cst HSFO at steep discounts near $7 a metric ton to cargo quotes, while contango widened at the prompt months.
The market has been eyeing high supply inflows from the Middle East as well as the region.
In its latest tender, Pakistan’s PARCO offered 50,000 tons of HSFO for mid-December loading from Karachi, based on information from its website as well as industry sources. The tender closes on Tuesday.
Meanwhile, the market for very low sulphur fuel oil (VLSFO) remained thinly traded, with bids and offers rangebound.
Fuel oil cracks were rangebound from last week. The VLSFO crack closed near a premium of $4 a barrel, while the 380-cst HSFO crack was at a discount of about $8 a barrel, data compiled by LSEG showed.
REFINERY UPDATES
– Indian refiners’ crude throughput rose by 6.8% month-on-month in October to 5.50 million barrels per day (22.50 million metric tons), provisional government data showed on Monday.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: Two trades
– 0.5% VLSFO: No trade
Source: Reuters
