Asia Fuel Oil-HSFO benchmarks dip; some end-Aug tenders underway

Asia benchmarks for 380-cst high sulphur fuel oil (HSFO) edged lower on Monday, while the market eyed some tenders offering prompt cargoes in end-August.

There were two HSFO cargoes for loading between August 29 and 30 offered by Indian refiners, with the tenders closing on Tuesday, according to shipping records.

Market sources said broader availability of HSFO in Asia is ample in the month. This has in turn capped market benchmarks, including spot cargo premiums and market backwardation spreads.

Singapore spot premium for 380-cst HSFO was pegged at $5.25 per metric ton on Monday, while backwardation between balance-August and September narrowed to below $8.

Meanwhile, the very low sulphur fuel oil market edged slightly higher on Monday, with cash premium inching above $5.50 per ton. The market structure also recovered slightly, with prompt backwardation widening slightly above $6.

BUNKER UPDATES

– TotalEnergies Marine Fuels has supplied its first cargo of 100% biofuel for ships in Singapore as it seeks to expand its sales of lower-carbon marine fuels, the company said on Monday.

OTHER NEWS

– Oil prices rose for a fifth consecutive session on Monday as U.S. recession fears eased while geopolitical tensions in the Middle East supported prices.

– Saudi crude oil exports to China are set to fall in September to about 43 million barrels, several trade sources said on Monday, citing monthly allocations for term buyers.

– Nigerian refineries including the Dangote Refinery have raised domestic crude requirements for the second half of 2024 to 597,700 barrels per day from 483,000 bpd in the first half, the national oil regulator said, despite tight domestic supply.

– Sasol Ltd will report a full-year loss after writing down 55.1 billion rand ($3 billion) in the carrying value of its chemicals and fuel assets, mainly because of weaker prices, the company said on Monday.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Alan Barona)