Asia’s refining crack for 380-cst high sulphur fuel oil firmed to a more than seven-month high on Friday, latest data showed.
The Singapore crack spread for May (FO380DUBCKMc1) closed at a discount of $7.73 a barrel, based on LSEG data at 0830 GMT.
The uptick emerged as the market eyed fewer incoming supplies from the Middle East ahead of higher stockpiling as the region heads into summer, typically its peak domestic demand season.
A recent drawdown in onshore inventories at the Singapore hub also supported benchmarks, though some trade sources said that broader inventory levels remained ample as the region received an influx of supply in March and April.
The cash differential for 380-cst HSFO was pegged at a premium of $1.65 a metric ton to Singapore quotes on Friday, with recovery largely capped.
Meanwhile, the very low sulphur fuel oil cash differential closed largely stable at a premium of $2.65 a metric ton, while cracks (LFO05SGDUBCMc1) were at premiums of about $11 a barrel.
In recent tenders for May-loading cargoes, Taiwan’s CPC offered catalyst fractionator bottom fuel, while India’s MRPL offered vacuum gasoil.
INVENTORY DATA
– ARA inventories (STK-FO-ARA) rose 6.0% to 1.61 million tons in the week to April 25, hitting seven-week highs, showed data from Dutch consultancy Insights Global.
OTHER NEWS
– Oil prices rose on Friday, on track to end higher this week after two straight weeks of losses, after a top U.S. official expressed optimism over economic growth and as supply concerns lingered due to conflicts in the Middle East.
– Chinese state energy major PetroChina has been waiting to unload a cargo of U.S. crude at Nigeria’s giant new refinery for nearly a month due to payment issues, according to four trading sources and shipping data.
– Russia’s state-owned reinsurer has given financial backing to three Russian insurance firms, allowing them to get Indian approval to provide marine insurance cover to tankers, two sources said, as Moscow seeks to facilitate trade with India amid Western sanctions.
– Anglo American’s management does not consider a proposed $39 billion takeover offer from BHP Group as attractive, two sources told Reuters, as some investors and analysts dismissed it as opportunistic.
Source: Reuters
