Asia spot fuel oil differentials held in steady discounts, weighed by a persistent backdrop of high supply.
Singapore’s very low sulphur fuel oil (VLSFO) cash differential continued to hold at discounts wider than $3 a metric ton, dragged by high inventory of blend stocks that added to the supply pool since the previous quarter.
Meanwhile, high sulphur fuel oil (HSFO) differentials also held in rangebound discounts, though market structure and time spreads improved slightly.
More arrivals of Middle Eastern cargoes to Asia are expected this month compared to the previous, as the exporting region had exited its summer demand season.
Asia’s October arrivals from the Middle East are set to breach 2 million tons, up about 10% from September, calculations based on LSEG ship-tracking data showed.
As for regional supply, Vietnam’s Nghi Son offered fuel oil for loading between October 23 and 25. The tender closes, a notice on its website showed.
INVENTORY DATA
– Fujairah heavy fuel inventories (FUJHD04) rose 3.6% to 6.14 million barrels (0.97 million tons) in the week to October 13, 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: No trade
Source: Reuters
