Asia fuel oil VLSFO cash bonuses rise due to sustained demand for freight

Asian cash bounties for 0.5% ultra-low sulfur fuel oil (VLSFO) rose on Wednesday, driven by sustained demand and tighter supplies.

Cash premiums for the 0.5% VLSFO in Asia climbed to $ 19.10 per tonne against Singapore quotes, from $ 16.15 per tonne on Tuesday.

First-month VLSFO crack fell 2 cents to $ 14.99 a barrel against Dubai crude during trading hours in Asia.

Meanwhile, the 380 cst HSFO barge crack for January traded at a discount of $ 11.09 per barrel to Brent on Wednesday, down from minus $ 10.97 per barrel on Tuesday.

Cash premiums for 380 cst high sulfur fuel oil (HSFO) fell to 1.29 cents per tonne against Singapore quotes, from $ 1.35 per tonne in the previous session.

INVENTORIES

– The stocks of heavy distillates and tailings in the Fujairah Oil Industry Zone (FOIZ) increased by 1.2% or 106,000 barrels (about 15,800 tons), compared to the previous week to reach 8, 9 million barrels (1.3 million tonnes), according to data from S&P Global Platts.

– Compared to levels a year ago, weekly fuel oil stocks at FOIZ were about 20% lower.

– Fuel oil stocks at FOIZ have averaged 10.3 million barrels so far this year, compared to a weekly average of 12.9 million barrels in 2020, according to Reuters calculations.

WINDOW PROFESSIONS

– A 380 cst HSFO trade, no VLSFO agreements

OTHER NEWS

– Indonesian state energy company PT Pertamina has issued a tender for up to 1.2 million barrels of high speed diesel (HSD) for delivery in January. The company says fueling is its “top priority” as its workers’ union is to hold a nationwide strike from December 29 to January 7 after failing to reach an agreement with management on working conditions .

– South Korean refiner SK Energy plans to shut down its 60,000 barrels per day (bpd) crude unit in Ulsan between March and April for a month of routine maintenance, an official at SK Innovation Co Ltd told Reuters on Tuesday.
Source: Reuters (Report by Koustav Samanta; Editing by Krishna Chandra Eluri)