Asia’s fuel oil market was largely steady on Tuesday as activity slowed, though the prompt-month contango for 380-cst high sulphur fuel oil (HSFO) narrowed.
The market continued to keep a lookout on potential longer-term impact arising from geopolitical risks, after the recent U.S. action against ships transporting Venezuelan oil.
Spot differentials for HSFO in Asia continued to hold in discounts, though the market structure firmed slightly.
Meanwhile, very low-sulphur fuel oil (VLSFO) saw range-bound bids and offers.
Prompt cracks for VLSFO were stable at premiums above $4 a barrel, while 380-cst HSFO cracks (FO380BRTCKMc1) held near discounts of $7 a barrel, LSEG data showed.
Separately, South Korea’s S-Oil had offered two cargoes of slurry for loading in January, each of 22,000 tons, according to shipping fixtures data from market sources. The tender closes on Tuesday.
Cracks for VLSFO were stable at premiums near $4.25 a barrel in thin trading, while HSFO cracks (FO380BRTCKMc1) dipped to discounts of about $7 a barrel, LSEG data showed on Tuesday.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters
