SINGAPORE, Feb 23 (Reuters) - Asia's spot fuel oil differentials fell at the start of the trading week, with strong incoming supplies seen this month and into next month.
Total fuel oil supplies arriving in Asia this month totalled about 6 million tons, climbing by more than 5% from last month, calculations based on LSEG shipping data showed as of Monday.
The uptick was led by strong Middle Eastern supplies, which comprised both high sulphur fuel oil (HSFO) loaded from the UAE as well as very low sulphur fuel oil (VLSFO) loaded from Kuwait.
Regional supply was also ample this month, while some regular cargoes are expected to load next month. Thailand's PTT offered HSFO and LSFO for loading in March, closing on Monday, based on industry sources.
Singapore's 380-cst HSFO cash differential dipped below a premium of $9 a metric ton on Monday, after holding above $10 for the whole of this month. Meanwhile, VLSFO's cash differential was steady at a premium of above $1 a ton.
Cracks were also under pressure. The 380-cst HSFO crack FO380BRTCKMc1 closed at a discount of about $5.35 a barrel, while VLSFO LFO05SGBRTCMc1 was at a premium near $6.25 a barrel.
FUJAIRAH BUNKER DATA
- Sales of marine fuel at the United Arab Emirates' Fujairah port started 2026 on a stronger note, with January volumes logging a four-month high, data from the Fujairah Oil Industry Zone showed.
OTHER NEWS
- Oil prices fell over 1% on Monday as the U.S. and Iran prepared for a third round of nuclear talks, easing fears of an escalating conflict, while President Donald Trump's fresh tariff hikes created uncertainty for global growth and fuel demand. O/R
- State energy major Saudi Aramco has sold several cargoes of ultra light crude oil from its $100 billion Jafurah gas plant to U.S. majors and an Indian refiner as it prepares to export its first cargo later this month, four trade sources said.
- Indonesian state oil and gas firm Pertamina said that energy product imports from the U.S. will still be conducted through a bidding process following the conclusion of a trade deal between the two countries.
- Australia's top fuel retailer Ampol reported a sharp drop in January refining margins on Monday, sending its shares to a more than six-month low, even as annual profit came in slightly ahead of market expectations.
WINDOW TRADES O/AS
- 180-cst HSFO: No trade
- 380-cst HSFO: No trade
- 0.5% VLSFO: No trade
ASSESSMENTS
FUEL OIL | ||||
CASH ($/T) | ASIA CLOSE | CHANGE | PREV CLOSE | RIC |
Cargo - 0.5% VLSFO | 488.34 | 25.66 | 462.68 | MFO05-SIN |
Diff - 0.5% VLSFO | 1.05 | 1.64 | -0.59 | MFO05-SIN-DIF |
Cargo - 180cst | 426.58 | -2.37 | 428.95 | FO180-SIN |
Diff - 180cst | 8.45 | -5.35 | 13.80 | FO180-SIN-DIF |
Cargo - 380cst | 422.12 | -5.83 | 427.94 | FO380-SIN |
Diff - 380cst | 8.85 | -7.71 | 16.56 | FO380-SIN-DIF |
Bunker (Ex-wharf) Premium - 380cst | 2.50 | 0.00 | 2.50 | |
Bunker (Ex-wharf) Premium - 0.5% VLSFO | 3.50 | 0.00 | 3.50 |
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 Shreya Biswas)
((jeslyn.lerh@thomsonreuters.com))