Asia’s cash premium for very-low sulphur fuel oil (VLSFO) fell for a second straight day as selling interest persisted, while a steady stream of tenders from Kuwait’s Al Zour refinery is also expected to weigh on the market.

The 0.5% VLSFO cash premium (MFO05-SIN-DIF) eased to $6.13 a tonne over Singapore quotes as spot offers softened from the previous day, though front-month refining margin (LFO05SGDUBCMc1) rose to a premium of $10.89 a barrel as crude prices eased in Asia trading hours.

Kuwait’s Al Zour had sold its latest cargo for mid-June at a discount of about $8 a tonne to Singapore quotes, market sources said. The price is considered to be expensive after taking into account freight costs, several sources said.

Meanwhile, high sulphur fuel oil (HSFO) was little changed, though its market structure eased slightly on Wednesday.

The 380-cst HSFO cash differential (FO380-SIN-DIF) dipped to a premium of $1.25 a tonne over Singapore quotes, while front-month crack for 380-cst HSFO (FO380DUBCKMc1) closed at a discount of $9.03 a barrel, holding near the same level for the past sessions.

In tenders, Malaysia’s RAPID recently sold 540,000 barrels of low-sulphur atmospheric residue for loading between June 11 and June 12, according to market sources.


Fujairah fuel oil inventories climbed 1% to 12.09 million barrels (1.90 million tonnes) in the week to June 5, showed Fujairah Oil Industry Zone data published by S&P Global Commodity Insights on Wednesday.


– Oil fell on Wednesday as concerns over global economic headwinds deepened, erasing the price gains booked after top crude exporter Saudi Arabia’s surprise weekend pledge to deepen output cuts.

– Daily power cuts have returned to west-central Venezuela, shutting air conditioners during a heat wave and hitting factories, households and utilities as poorly maintained thermal plants fail to compensate for weak hydroelectric generation, residents, engineers and analysts said.

– Australia’s Woodside Energy has started marketing a new African crude oil from Senegal’s first oil project, where the company aims to start producing by the end of this year, a senior executive said.

– The European Commission is investigating the flow of allegedly fraudulent biofuels into the EU following a complaint from Germany, sources told Reuters, as a Commission spokesman said the bloc was determined to tighten oversight of the trade.


– 180-cst HSFO: No trade

– 380-cst HSFO: No trade

– 0.5% VLSFO: No trade

Source: Hellenic Shipping News