Refining cracks for high-sulphur fuel oil (HSFO) retained its recent strength on Thursday, though spot premiums showed signs of easing.
Singapore’s March 380-cst HSFO/Brent crack (FO380BRTCKMc1) closed at a discount of 56 cents a barrel on Thursday, holding near multi-year highs, based on LSEG data.
However, spot premiums held steady to softer, with 380-cst HSFO cash premium dipping below $7 a metric ton amid weaker offers for prompt-loading parcels.
The market has been contemplating mixed factors for supply and demand in recent weeks.
Meanwhile, cash premium for very low sulphur fuel oil (VLSFO) also fell, while product crack closed lower at a premium near $11 a barrel on Thursday. (LFO05SGBRTCMc1)
Onshore fuel oil inventories at Singapore edged up this week, with most import cargoes hailing from the United States and Indonesia, while no direct import from Russia was recorded, official data showed.
INVENTORY DATA
– Fujairah heavy fuel inventories (FUJHD04) fell 6.0% to 8.15 million barrels (1.28 million tons) in the week to Feb. 3, showed FOIZ data published by S&P Global Commodity Insights.
– Singapore onshore fuel oil stockpiles (STKRS-SIN) were at 19.25 million barrels (3.03 million tons) in the week to Feb. 5, up 6.1% week-on-week, Enterprise Singapore data showed.
