Spot fuel oil differentials edged marginally higher in Asia on Thursday, while onshore inventories in Singapore extended declines.
High sulphur fuel oil (HSFO) cash differential traded into narrower discounts of $1 a metric ton to cargo quotes, though market sources said that supply remained plentifully available.
Meanwhile, very low sulphur fuel oil (VLSFO) inched higher after a stronger bid emerged for June loading dates, lifting cash differential above premiums of $7 a metric ton.
Fuel oil stockpiles at Singapore hit their lowest in seven weeks, as exports jumped and imports fell, data showed on Thursday.
Despite the weekly decline in stockpiles, market sources noted that Asia continues to receive strong volumes of high-sulphur fuel oil from the Middle East.
Cracks were elevated on Thursday. June 380-cst HSFO cracks (FO380BRTCKMc1) closed higher at premiums above $2 a barrel, while VLSFO cracks (LFO05SGBRTCMc1) rose to premiums of about $12.50 a barrel.
INVENTORY DATA
– Singapore onshore fuel oil stockpiles (STKRS-SIN) were at 20.54 million barrels (about 3.24 million metric tons) in the week to May 7, falling 8.6% week-on-week, showed Enterprise Singapore data.
– Fujairah heavy fuel inventories (FUJHD04) eased 2.6% to 10.46 million barrels (1.65 million tons) in the week to May 5, showed FOIZ data published by S&P Global Commodity Insights.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: Two trades
– 0.5% VLSFO: No trade Source: Reuters
