Spot differentials for the Asia fuel oil market were little changed on Wednesday, though high-sulphur fuel cracks inched higher amid volatile crude prices.
Benchmarks for crude strengthened on the day after U.S. President Donald Trump ordered a total and complete blockade of all sanctioned oil tankers entering and leaving Venezuela.
It was not immediately clear whether this would impact Venezuelan fuel oil trade flows, though exports have been on the decline for months even before this, data from Kpler showed.
In the broader Asia market, spot discussions largely retained a slow pace as with previous sessions.
Singapore’s 380-cst HSFO cash differential was pegged at a discount of $3.25 a metric ton, with some bids and offers narrowing into a range of discounts between $3 and $3.50 a ton.
Meanwhile, very low sulphur fuel oil (VLSFO) held stable near a discount of 33 cents, though contango for prompt months narrowed slightly.
In tenders, Thailand’s PTT offered 35,000 tons of LSFO for loading from Map Ta Phut between January 22 and 24. The tender closes on Thursday, according to market sources.
Cracks were steady to higher from the previous day, with 380-cst HSFO crack (FO380BRTCKMc1) climbing to a discount near $6.20 a barrel, while VLSFO crack (LFO05SGBRTCMc1) was steady at a premium of $4.35 a barrel, based on data by LSEG.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters
