Asia Fuel Oil-HSFO market steadies after recent declines

Reuters
04 Jul
Asia Fuel Oil-HSFO market steadies after recent declines

SINGAPORE, July 4 (Reuters) - Spot differentials for Asia high sulphur fuel oil (HSFO) steadied on Friday after sharp declines earlier this week, but ended the week in steep discounts to cargo quotes.

The market remained pressured due to high supplies and slow demand.

Cracks for 380-cst HSFO closed at discounts near $2 a barrel to crude futures, sliding from the previous week. FO380BRTCKMc1, FO380DUBCKMc1

Meanwhile, the very low sulphur fuel oil (VLSFO) market was firmer, with cracks closing at premiums above $11 a barrel to crude. LFO05SGDUBCMc1, LFO05SGBRTCMc1

The hi-5 marker FO05-380SGMc1 remained wide at $84.60 a ton on Friday, higher week-on-week as HSFO softened while VLSFO strengthened.

PRICING NEWS

- Commodities pricing agency S&P Global Platts will no longer be reflecting three floating storage units as loading points in its assessments of Singapore fuel oil cargoes and ex-wharf bunker fuel, the company said in a note to subscribers.

OTHER NEWS

- Oil futures fell slightly on Friday after Iran reaffirmed its commitment to nuclear non-proliferation, while major producers from the OPEC+ group are set to agree to raise their output this weekend. O/R

- Saudi oil giant Aramco is looking to sell up to five gas-fired power plants, three sources with knowledge of the matter told Reuters, part of a broader effort to free up funds that could generate tens of billions of dollars.

- Ecuadorean state oil company Petroecuador declared force majeure on all operations, including crude exports, after two key pipelines suspended pumping, the firm's head said on Thursday.

- Australian oil and gas producer Santos said on Friday it had signed a mid-term liquefied natural gas supply deal with QatarEnergy Trading, a wholly-owned unit of QatarEnergy, the world's largest exporter of LNG.

WINDOW TRADES O/AS

- 180-cst HSFO: No trade

- 380-cst HSFO: Seven trades

- 0.5% VLSFO: Two trades

ASSESSMENTS

FUEL OIL

CASH ($/T)

ASIA CLOSE

CHANGE

PREV CLOSE

RIC

Cargo - 0.5% VLSFO

512.68

-0.92

513.61

MFO05-SIN

Diff - 0.5% VLSFO

7.65

-0.40

8.05

MFO05-SIN-DIF

Cargo - 180cst

413.94

0.10

413.84

FO180-SIN

Diff - 180cst

-7.40

-0.35

-7.05

FO180-SIN-DIF

Cargo - 380cst

407.59

1.32

406.28

FO380-SIN

Diff - 380cst

-6.40

0.75

-7.15

FO380-SIN-DIF

Bunker (Ex-wharf) Premium - 380cst

2.00

1.00

1.00

Bunker (Ex-wharf) Premium - 0.5% VLSFO

9.00

0.00

9.00

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 Eileen Soreng)

((jeslyn.lerh@thomsonreuters.com))

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