Spot premiums for 380-cst high sulphur fuel oil (HSFO) climbed in Asia as brisk trade emerged on Wednesday following a week of largely thin activity.
Although the region is set to receive high volumes of Russian fuel oil in October, some traders said November arrivals may taper off due to ongoing attacks on Russia’s oil facilities, lending a floor to the market.
As for very low sulphur fuel oil (VLSFO), the market’s cash differential has recovered back into a small premium, after holding in discounts for about two weeks.
Trade participants also await more clarity on Nigeria’s Dangote low-sulphur residual exports, following developments around a recent strike that has now been called off.
Meanwhile, the hi-5 spread continued to widen, closing at above $73 a metric ton on Wednesday.
Front-month crack for VLSFO closed slightly higher at a premium of $7.75 a barrel, while 380-cst HSFO crack eased to a discount of $3.75 a barrel, data compiled by LSEG showed.
INVENTORY DATA
– Fujairah heavy fuel inventories fell 16.9% to 5.51 million barrels (0.87 million tons) in the week to September 29, FOIZ data published by S&P Global Commodity Insights showed.
OTHER NEWS
– Oil prices steadied on Wednesday after two days of declines as investors weighed OPEC+ plans for a larger output hike next month and the outcome of a U.S. government shutdown that could impact economic activity and fuel demand.
– Nigeria’s oil workers union has agreed to call off a strike after a meeting with the management of Dangote Petroleum and government officials, the country’s labour ministry said.
– The upgrade of Indonesia’s state energy firm Pertamina’s Balikpapan refinery is 96.5% complete and a crucial unit is gearing up to launch operations in the fourth quarter, Pertamina’s refining subsidiary said on Wednesday.
– Top U.S. oil major Exxon Mobil said it will lay off 2,000 workers globally, particularly in Canada and across the European Union, as part of a long-term restructuring plan that will affect about 3% to 4% of the company’s workforce. It also expects to cut the number of its employees in Singapore by 10% to 15% and move its office to the site of its Jurong plant from downtown by the end of 2027, in global restructuring efforts, the company said on Wednesday.
WINDOW TRADES
– 180-cst HSFO: Four trades
– 380-cst HSFO: Four trades
– 0.5% VLSFO: No trade
Source: Reuters
