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Asia Fuel Oil-HSFO and VLSFO markets steady on week

Cash differentials in Asia’s fuel oil markets were stable in thin trading this week, with HSFO premiums staying strong due to a counter-seasonal draw in inventories across key trading hubs.

The 380-cst HSFO cash differential rose by 17 cents to a premium of $23.42 a metric ton on Friday and the 180-cst HSFO cash differential also gained 17 cents at $24.59 per ton.

Meanwhile, in the marine fuel market, the 0.5% VLSFO premium was steady at $7.27 a metric ton on Friday. MFO05-SIN-DIF

INVENTORIES

Global fuel oil inventories fell for the second consecutive week, by 1.8 million barrels led by a decline in U.S. stocks, due to low medium sour crude availability reducing fuel oil yields, according to estimates by consultancy FGE.

However, inventories at the Amsterdam-Rotterdam-Antwerp (ARA) rose slightly to 1.280 million tons in the week to Aug. 17, data from Dutch consultancy Insights Global showed. ARA/

TENDERS

India’s MRPL sold 20,000 tons of 380-cst HSFO and 20,000 tonnes of 0.5% VLSFO to Aramco Trading for loading during Aug. 21-23, market participants said.

The company also sold 40,000 tons of vacuum gas oil to Trafigura for Sept. 2-4 loading, they added.

Another player, HPCL, was heard to have sold 30,000-35,000 tons of 380-cst fuel oil to E3 Energy for loading during Aug. 28-29.

OTHER NEWS

– China’s exports of fuel products more than doubled in July from a year earlier, data showed on Friday, as refiners maintained high run rates and took advantage of strong export margins.

– Asian refiners are on the hunt for crude oil to replace Kuwaiti supply as the OPEC producer cuts exports by nearly a fifth to feed its huge new refinery, which is driving up prices for other sour crudes and likely to squeeze profit margins.
Source: Reuters (Reporting by Mohi Narayan; Editing by Eileen Soreng)

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