Asia Fuel Oil-Spot HSFO differential flips back to thin premium

Reuters
05-13
Asia Fuel Oil-Spot HSFO differential flips back to thin premium

SINGAPORE, May 13 (Reuters) - Spot differential for Asia 380-cst high sulphur fuel oil (HSFO) was back in a thin premium on Tuesday, while market backwardation widened at the prompt months for all key grades.

The differential was near parity to cargo quotes in the last trading session, having recovered from discounts previously.

Some spot bids for HSFO edged higher this week, though broader trading momentum remained largely quiet.

Refining cracks for the product gained, with the June contracts LFO05SGBRTCMc1 closing near premiums of $3 a barrel, based on LSEG's data.

Meanwhile, very low sulphur fuel oil (VLSFO) market was rangebound amid an absence of fresh drivers, with cracks for VLSFO holding above premiums of $12 a barrel.

REFINERY UPDATES

- Chevron is attempting to restart the El Segundo, California refinery after taking units offline last week, sources familiar with plan operations said.

OTHER NEWS

- Oil prices edged higher on Tuesday, with gains capped by rising supplies and caution over whether the pause in the U.S.-China trade war will lead to a longer-term deal. O/R

- Saudi Arabia's crude oil supply to China is set to hold steady in June, trade sources said on Tuesday.

- Black Sea CPC Blend oil exports via the Caspian Pipeline Consortium system were set at 1.5 million barrels per day (or about 6 million metric tons) for May, down from some 1.6 million barrels per day in April, two industry sources said.

- The container shipping industry welcomed an agreement between the United States and China to temporarily slash punishing tariffs, saying it expected to be buoyed by a resulting recovery in bookings from China to the U.S.

WINDOW TRADES O/AS

- 180-cst HSFO: No trade

- 380-cst HSFO: No trade

- 0.5% VLSFO: No trade

ASSESSMENTS

FUEL OIL

CASH ($/T)

ASIA CLOSE

CHANGE

PREV CLOSE

RIC

Cargo - 0.5% VLSFO

495.51

7.88

487.63

MFO05-SIN

Diff - 0.5% VLSFO

7.30

0.05

7.25

MFO05-SIN-DIF

Cargo - 180cst

435.46

15.21

420.24

FO180-SIN

Diff - 180cst

-2.25

0.65

-2.90

FO180-SIN-DIF

Cargo - 380cst

428.64

15.81

412.83

FO380-SIN

Diff - 380cst

1.00

1.00

0.00

FO380-SIN-DIF

Bunker (Ex-wharf) Premium - 380cst

2.00

-0.50

2.50

Bunker (Ex-wharf) Premium - 0.5% VLSFO

9.00

0.50

8.50

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 Shailesh Kuber)

((jeslyn.lerh@thomsonreuters.com))

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