Asia’s spot differential for very low sulphur fuel oil (VLSFO) inched higher on Monday, though remaining stuck in a discount as regional supply remained ample.
Bids for November-loading VLSFO firmed from the previous session, lifting the Singapore cash differential nearer to $1 a metric ton.
Meanwhile, high sulphur fuel oil (HSFO) markets remained volatile. The market structure for 380-cst HSFO softened into a steeper contango for prompt months, though spot differentials were slightly higher from last week.
Cracks for both grades were also mixed. Singapore’s 380-cst HSFO crack (FO380BRTCKMc1) fell to a discount of around $3.70 a barrel, while VLSFO’s crack (LFO05SGBRTCMc1) rose to a premium near $5.65 a barrel, data compiled by LSEG showed
As for recent tenders, Vietnam’s Nghi Son offered more fuel oil than usual, based on notices on its website.
It offered a rare parcel comprising 50,000 metric tons of straight-run HSFO in a tender that closed on Monday. The cargo is scheduled to load before November 16.
Separately, it is also offering 7,000 tons of fuel oil for loading between November 8 and November 10, in another tender that closes on October 29.
REFINERY UPDATES
– Nigeria’s Dangote Petroleum Refinery plans to more than double its production capacity to 1.4 million barrels per day, up from 650,000 bpd, its owner Aliko Dangote said on Sunday.
WINDOW TRADES
– 180-cst HSFO: No trade – 380-cst HSFO: Two trades – 0.5% VLSFO: No trade
Source: Reuters
