Asia Fuel Oil-VLSFO cash premium rises, Singapore stocks dip

Asia’s low-sulphur fuel oil (VLSFO) rose on Thursday after Singapore inventories dropped to a two-week low.

Cash premiums for VLSFO were up 25 cents at $6.65 a metric ton. Premium for high-sulphur fuel oil (HSFO) on the other hand declined. Cash differential for 180-cst HSFO was pegged at a premium of $8.85 a ton, while premium for 380-cst traded at $7.48 per ton.

Meanwhile, Kuwait Petroleum Corporation (KPC) concluded its term tender offering low-sulphur fuel oil (LSFO) with Qatar Energy, for loading between July and December this year, trade sources said.

INVENTORIES

Singapore stocks for fuel oil STKRS-SIN fell 7.89% to 19.115 million barrels (3.01 million metric tons), after hitting a three-week high in the week ended May 8, Enterprise Singapore data showed.

Total imports slumped 58% in the absence of Russian arrivals, while arrivals from top importers Malaysia and Brazil were about halved week-on-week.

OTHER NEWS

– Brent oil futures held steady on Thursday, bolstered by signs of stronger demand in the U.S. after slower than expected inflation in April and lower oil stocks in the past week. O/R

– Chevron said it is set to launch the sale of its remaining UK North Sea oil and gas assets, in a move that would mark the U.S. energy giant’s exit from the ageing basin after more than 55 years.

– Russia’s seaborne oil product exports in April fell 14.6% from the previous month to 8.415 million metric tons due to seasonal and unplanned maintenance at refineries and a fuel export ban, data from industry sources and Reuters calculations showed.
Source: Reuters (Reporting by Mohi Narayan; Editing by Vijay Kishore)