Asia Fuel Oil

in International Shipping News24/08/2023

Asia’s cash differential for 380-cst high sulphur fuel oil (HSFO) showed signs of easing on Wednesday after holding steady since early August.

The cash differential FO380-SIN-DIF slipped to a premium of $19.77 a metric ton over Singapore quotes as lower offers emerged. The market had rallied earlier this month.

September crack for 380-cst HSFO FO380DUBCKMc1 also retreated on Wednesday, easing to a discount of $4.12 a barrel by 0830 GMT, after holding at 15-month highs the previous day.

Meanwhile, very low sulphur fuel oil (VLSFO) remained range-bound. The 0.5% VLSFO cash differential MFO05-SIN-DIF climbed to a premium of $4.92 a metric ton, though refining crack LFO05SGDUBCMc1 closed lower at a premium of $10.37 a barrel.

In tenders, Thailand’s PTT offered VLSFO for loading between September 16 and 18. The tender closes on Wednesday and will be awarded on Thursday.

FUJAIRAH INVENTORIES FUJAIRAH/

Fuel oil inventories at Fujairah FUJHD04 rose 6% to 9.30 million barrels (1.46 million tons) in the week to Aug. 21, showed Fujairah Oil Industry Zone data published by S&P Global Commodity Insights.

OTHER NEWS

– Oil prices dropped on Wednesday, as traders were cautious ahead of potentially gloomy manufacturing data and an annual meeting where heavy-hitter central bankers including from the United States will talk interest rates.

– Vietnam’s largest oil refinery has shut down some of its units, beginning a 55-day total shutdown for major maintenance, a company source said on Wednesday.

– A fire that broke out at Japanese refiner Eneos Corp’s Mizushima refinery in western Japan on Wednesday was extinguished at 1437 local time (0537 GMT), the company said, while declining to give further details.

– Two tankers, the Singapore-flagged BW Lesmes and Cayman Islands-flagged Burri, briefly collided in Egypt’s Suez Canal, ship tracking company MarineTraffic said early on Wednesday, citing eyewitnesses.

WINDOW TRADES O/AS

– 180-cst HSFO: No trade– 380-cst HSFO: No trade– 0.5% VLSFO: One tradeSource: Reuters (Reporting by Jeslyn Lerh; editing by Eileen Soreng)