SINGAPORE, Feb 6 (Reuters) - Asia's hi-5 fuel oil spread narrowed to nearly an 11-month low as of Friday, with the very low-sulphur fuel oil (VLSFO) market coming under pressure in recent sessions while high sulphur fuel oil (HSFO) retained strength.
The hi-5, which reflects VLSFO's premium over the price of 380-cst HSFO, fell to about $40 a metric ton as of Friday's Asia close, showed prompt-month data by LSEG. FO05-380SGMc1
A flurry of trades emerged at the end of the trading week, though spot differentials were broadly steady, with 380-cst HSFO's rally taking a breather.
Separately, Pakistan's PARCO offered 50,000 tons of 180-cst HSFO for loading after February 20, based on trade sources. The tender closes on February 9. FUEL/A
Cracks for both grades were rangebound, with February 380-cst HSFO crack FO380BRTCKMc1 closing at a discount near $4.65 a barrel, while VLSFO crack LFO05SGBRTCMc1 climbed to a premium of about $4.65 a barrel, LSEG data showed.
INVENTORY DATA
- ARA fuel oil inventories STK-FO-ARA fell 10.8% to 1.03 million tons in the week to February 1, based on data from Dutch consultancy Insights Global.
OTHER NEWS
- Oil rose more than 1% on Friday but were heading for their first weekly drop in nearly two months, as supply concerns eased and investors focused on the outcome of U.S.-Iran talks due later in the day. O/R
- Saudi Arabia cut the official selling price of March Arab Light crude to Asia to a more than five-year low on Thursday, marking the fourth straight month of price cuts.
- Chevron is one of at least two companies vying for Lukoil's global assets, despite the Russian energy company's initial agreement last week to sell them to U.S. private equity firm Carlyle, four sources familiar with the conversations said.
- Japan's Mitsui & Co is close to buying a stake in the second phase of QatarEnergy's massive North Field project as it seeks to secure stable liquefied natural gas supply, five sources close to the matter told Reuters.
WINDOW TRADES O/AS
- 180-cst HSFO: No trade
- 380-cst HSFO: Two trades
- 0.5% VLSFO: Five trades
ASSESSMENTS
FUEL OIL | ||||
CASH ($/T) | ASIA CLOSE | CHANGE | PREV CLOSE | RIC |
Cargo - 0.5% VLSFO | 457.17 | -4.59 | 461.76 | MFO05-SIN |
Diff - 0.5% VLSFO | -1.75 | -0.80 | -0.95 | MFO05-SIN-DIF |
Cargo - 180cst | 423.71 | -3.08 | 426.79 | FO180-SIN |
Diff - 180cst | 8.85 | -1.10 | 9.95 | FO180-SIN-DIF |
Cargo - 380cst | 422.89 | -2.28 | 425.18 | FO380-SIN |
Diff - 380cst | 12.05 | -0.20 | 12.25 | FO380-SIN-DIF |
Bunker (Ex-wharf) Premium - 380cst | 2.00 | 0.00 | 2.00 | |
Bunker (Ex-wharf) Premium - 0.5% VLSFO | 4.00 | 0.00 | 4.00 |
For a list of derivatives prices, please refer to ENSWAP/INFO or the RICs below: | |
180cst M1 | FO180SGSWMc1 |
180cst M1/M2 | FO180SGSDMc1 |
380cst M1 | FO380SGSWMc1 |
380cst M1/M2 | FO380SGSDMc1 |
0.5% VLSFO M1 | LFO05FSGMc1 |
0.5% VLSFO M1/M2 | LFO05FSGSMc1 |
Cracks 180cst-Brent M1 | FO180BRTCKMc1 |
Cracks 180cst-Dubai M1 | FO180SGCKMc1 |
Cracks 380cst-Brent M1 | FO380BRTCKMc1 |
Cracks 380cst-Dubai M1 | FO380DUBCKMc1 |
Cracks 0.5% VLSFO-Brent M1 | LFO05SGBRTCMc1 |
Cracks 0.5% VLSFO-Dubai M1 | LFO05SGDUBCMc1 |
Visco 180cst/380cst M1 | FOVISSGDFMc1 |
Hi-5 0.5% VLSFO/380cst M1 | FO05-380SGMc1 |
GoFo 10PPM/0.5% VLSFO M1 | GO10FO05FSGMc1 |
East-West M1 | FOSGEWMc1 |
Barges M1 | HFOFARAAMc1 |
Barges M1/M2 | HFOFARAASMc1 |
Crack Barges-Brent M1 | HFOFARAACMc1 |
(Reporting by Jeslyn Lerh; Editing by Leroy Leo)
((jeslyn.lerh@thomsonreuters.com))