The spot differential for very low sulphur fuel oil (VLSFO) in Asia rose for a fifth trading session, while the market structure recovered further.
The cash differential for Singapore VLSFO traded at $3 a metric ton on Wednesday, up from $1 in the previous session.
Despite the uptick, Asia’s incoming fuel oil supplies are expected to be higher for January compared to December, based on ship-tracking data from LSEG.
Discounts for high sulphur fuel oil (HSFO) were little changed on Wednesday, with bids and offers in a tight range.
Meanwhile, cracks rebounded on Wednesday after declining on Tuesday. The February 380-cst HSFO/Brent crack (FO380BRTCKMc1) rose to a discount nearly $7.40 a barrel, while VLSFO crack (LFO05SGBRTCMc1) was at a premium of around $3.30 a barrel.
INVENTORY DATA
– Fujairah heavy fuel inventories (FUJHD04) rose 12.8% to 10.04 million barrels (1.58 million tons) in the week to January 12, FOIZ data published by S&P Global Commodity Insights showed.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: One trade
Source: Reuters
