180-cst HSFO in steady discounts as consistent supplies weigh

The spot 180-cst high sulphur fuel oil (HSFO) market traded at steady discounts on Wednesday, while stable supply arrivals weighed on the broader fuel oil market.

Trafigura bought a 20,000-tonne cargo of 180-cst HSFO from PetroChina at a discount of $3 a tonne to Singapore quotes, and another 20,000-tonne cargo from Total at a discount of $2.50 to Singapore quotes.

Meanwhile, the 0.5% very low sulphur fuel oil (VLSFO) market held in stable premiums amid thin trade.

A stream of VLSFO offers continued to emerge but buying interest was scent. The market’s spot cash differential was at a premium of $7.80 a tonne to Singapore quotes on Wednesday.

Stable downstream bunker fuel demand provided a floor to the VLSFO market. Bunker fuel premiums on a delivered basis held at about $30 a tonne to Singapore quotes, traders said.

FUJAIRAH INVENTORIES

Residual fuel oil stocks at Fujairah fell by 3% to 10.06 million barrels (1.58 million tonnes) in the week ended Jan. 9, showed data from the Fujairah Oil Industry Zone published by industry information service S&P Global Commodity Insights.
Source: Reuters