Asia’s very low sulphur fuel oil (VLSFO) crack reached its highest in more than three weeks, data showed on Monday.
The December VLSFO crack closed at a premium above $7.50 a barrel, according to data compiled by LSEG. (LFO05SGBRTCMc1)
Talk of a delay in the resumption of a crude unit at Kuwait’s al-Zour refinery boosted sentiment slightly.
As for high sulphur fuel oil (HSFO), the crack for 380-cst fuel also firmed versus the previous session, closing at a discount of about $4.45 a barrel on Monday. (FO380BRTCKMc1)
Despite the uptick in cracks, the prompt market structure and spot differentials for HSFO fell into steeper discounts on Monday.
The overall Asia market is expected to stay adequately supplied this month, with ample cargoes being offered for November loading via tenders issued in the past weeks, trade sources said.
REFINERY UPDATES
– State-owned Kuwait Integrated Petroleum Industries Company has delayed the restart of a crude unit at its 615,000 barrels per day Al Zour oil refinery that was shut down on October 21 due to a fire, industry monitor IIR said. – South Korea’s S-Oil, whose main shareholder is Saudi Aramco, said on Monday it expects fourth-quarter regional refining margins to be robust amid limited supply due to global refinery outages and shutdowns of aging facilities.
