Asia Fuel Oil-Spot 380-cst HSFO firms while cracks retain strength

Spot premium for 380-cst high sulphur fuel oil (HSFO) strengthened on Wednesday as bids trended higher, while refining cracks held on to their recent strength.

The market has received a boost despite recovering supplies to Asia this month, driven by firm sentiment in the western hub of Rotterdam which saw barge cracks rallying up.

Singapore’s front-month 380-cst HSFO cracks held near discounts of $2 a barrel on Wednesday, maintaining at the highest since May 2022, based on LSEG data.

Cash premium for 380-cst HSFO was pegged higher at $14.25 a metric ton on Wednesday amid firmer-priced bids for November dates, while 180-cst HSFO traded up at $16 a ton.

In tenders, Kuwait Petroleum Corporation offered 60,000 tons of HSFO for loading in November, closing on Wednesday.

INVENTORY DATA

– Singapore onshore fuel oil stockpiles fell 23.8% to 15.35 million barrels (about 2.42 million metric tons) in the week to Oct. 29, Enterprise Singapore data showed. The data was released a day earlier and took into account one day less of inventory volume, due to a public holiday on Thursday.

– Fujairah heavy fuel inventories climbed 3.0% to 8.82 million barrels (1.39 million tons) in the week to Oct. 28, FOIZ data published by S&P Global Commodity Insights showed.

OTHER NEWS

– Oil prices held steady near one-month lows on Wednesday, as markets weighed a potential ceasefire between Israel and Hezbollah and rising OPEC+ crude supplies against a possible drop in U.S. fuel stocks and demand concerns.

– Swiss-based energy trader Litasco is hiring experienced traders and has lined up credit lines to revive its business in the Americas that withered after Russia invaded Ukraine in 2022, three sources close to the company said.

– Shell on Wednesday said it had completed a clean-up of the channel between Bukom Besar and Kechil Islands near the original source of an oil leak in Bukom, Singapore on Tuesday.

– Danish shipping group A.P. Moller-Maersk said on Wednesday it has signed a long-term deal for the supply of bio-methanol to its vessels from China’s LONGi Green Energy Technology 601012.SS from 2026.
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Krishna Chandra Eluri)