Asia’s spot differential for very low sulphur fuel oil (VLSFO) pared slightly on Thursday, snapping four straight sessions of gains, while onshore inventories climbed in Singapore.
Stockpiles rebounded to their highest in three weeks, despite easing imports from the previous week. Supplies to broader Asia has been strong in the month, contributing to inventory builds.
In tenders, Nigeria’s Dangote offered more residual fuel for loading in September, industry sources said. Most of its August-loading exports are bound for Asia, based on Kpler ship-tracking data.
Meanwhile, high sulphur fuel oil (HSFO) discounts narrowed day-on-day, with spot bids improving slightly for the 380-cst fuel grade.
INVENTORY DATA
– Singapore residual fuel inventories (STKRS-SIN) rose 7.3% to 24.72 million barrels (3.89 million metric tons) in the week to Aug. 27, according to Enterprise Singapore data.
OTHER NEWS
– Oil prices steadied on Wednesday, after falling in the previous session, as investors watched for fresh developments in the Ukraine war and weighed an industry report that showed a drop in U.S. crude inventories.
– Volatility increased in Chinese crude and fuel oil futures markets this week on concerns U.S. sanctions on an oil storage terminal in east China would prevent physical deliveries for the contracts.
– Singapore’s Aster Chemicals and Energy has declared a force majeure on petrochemical supplies from its naphtha cracker on Bukom island, according to a letter seen by Reuters and multiple sources with direct knowledge of the matter on Thursday.
– Russian energy company Novatek’s repairs to damage caused by a fire at its complex in the Baltic port of Ust-Luga are likely to take several months, four market sources said on Thursday.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters
