Asia Fuel Oil 180-cst HSFO cash differentials flip to premiums

Asia’s cash differentials for 180-cst high-sulphur fuel oil (HSFO) climbed to a premium on Tuesday, reaching their highest level in four weeks, boosted by a tighter deal in the physical trade window.

The cash differentials for a 180-cst HSFO were at a premium of $1.27 per tonne to Singapore quotes, the highest rate since January 31. They were at a discount of 15 cents per tonne a day earlier.

Asia’s cash premium differentials for the 380-cst HSFO increased for a second consecutive session to 992 cents per tonne to Singapore quotes, up 20 cents from a day earlier, while the front-month 380-cst HSFO barge crack traded at a discount of $14.61 per barrel to Brent on Tuesday.

On Tuesday, cash premiums for Asia’s 0.5% VLSFO increased to $18.40 per tonne to Singapore quotes, the highest level since December 23 last year. They sank to $17.78 per tonne on Monday.

On Tuesday, the front-month VLSFO crack fell 8 cents to $22.35 a barrel, compared to Dubai crude.

RUSSIAN-LINKED SHIPS IN THE UK

As the country intensified pressure on Moscow, Britain ordered its ports to block Russian ships that are classified or believed to be registered, owned, or controlled by any person connected with Russia.

– Transport Secretary Grant Shapps said in a letter to all UK ports that further detailed sanctions against Russian ships were being implemented following Russia’s invasion of Ukraine.

“The maritime sector is fundamental to international commerce, and we must play our part in restricting Russia’s economic interests and allowing the Russian government to act,” he said in a letter published on Twitter.

TRADES IN REAL TIME

One 180-cst high-sulphur fuel oil (HSFO) transaction, and no 380-cst HSFO trades.

Two VLSFO trades have been reported.

OTHER NEWS

Oil prices rose on Tuesday as concerns over supply disruptions following Russia’s invasion of Ukraine and related sanctions outweighed discussions of a coordinated global crude stocks release.

Shell will cancel all of its Russian operations, including a major liquefied natural gas plant, it said on Monday, making it the latest major Western energy company to quit the oil-rich country following Moscow’s invasion of Ukraine.
Source: Reuters