Spot premiums for high sulphur fuel oil (HSFO) fell for a second straight day in Asia, while very low sulphur fuel oil (VLSFO) was largely stable.
Singapore’s cash premium for 380-cst HSFO was pegged below $8 a metric ton, while cracks closed lower from the previous day but held in premiums over Brent and Dubai quotes, LSEG data showed.
VLSFO cash premium was pegged at above $8 a metric ton, while cracks were rangebound from the previous session.
The market remained watchful of an ongoing conflict between Israel and Iran, which could threaten tanker movements through the Strait of Hormuz.
Meanwhile, Taiwan’s CPC sought LSFO for delivery between July and August in a tender that closes on Wednesday.
INVENTORY DATA
– Fujairah heavy fuel inventories fell 3.4% to 8.46 million barrels (1.33 million tons) in the week to June 18, FOIZ data published by S&P Global Commodity Insights showed.
OTHER NEWS
– Oil eased on Wednesday, after a gain of 4% from the previous session, as markets weighed the chance of supply disruptions from the Iran-Israel conflict against a U.S. Federal Reserve rates decision that could weigh on oil demand.
– Brent crude’s premium to Middle East benchmark Dubai soared above $3 a barrel on Wednesday, market sources said, hitting its highest since late September 2023, according to LSEG data.
– Global oil demand will keep growing until around the end of this decade despite peaking in top importer China in 2027, as cheaper gasoline and slower electric vehicle adoption in the United States support consumption, the IEA said.
– The UAE’s energy ministry said a collision between two oil tankers near the Strait of Hormuz was likely caused by a navigational misjudgement by one of the vessels.
WINDOW TRADES
– 180-cst HSFO: No trade – 380-cst HSFO: Three trades – 0.5% VLSFO: No trade
Source: Reuters
