SINGAPORE: Asia's front-month crack for 0.5% very low-sulphur fuel oil (VLSFO) climbed to their strongest level in more than two weeks on Friday, posting a weekly rise, lifted by firmer bunker demand.
The front-month VLSFO crack rose to $13.64 per barrel against Dubai crude during Asian trade on Friday, the highest since Oct. 21. The crack was at $13.04 per barrel in the last trading session on Wednesday, and has gained 7.6% this week.
Cash differentials for Asia's 0.5% VLSFO were at a premium of $2.08 a tonne to Singapore quotes on Friday, up from $1.93 per tonne on Wednesday.
Meanwhile, Asia's cash differentials for 180-cst high sulphur fuel oil (HSFO) flipped to a narrow premium of 20 cents per tonne to Singapore quotes on Friday, compared with a discount of 56 cents per tonne on Wednesday.
Fuel oil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub dipped 0.4% to 1.01 million tonnes in the week to Nov. 4, data from Dutch consultancy Insights Global showed.
The data showed ARA gasoil inventories fell 3.9% to 1.96 million tonnes. The Baltic Exchange's dry bulk sea freight index fell for the 11th straight session on Thursday, dragged lower by a dip in rates across its vessel segments.
The overall index, which factors in rates for capesize, panamax and supramax vessels, fell by 123 points, or 4.3%, to 2,769, its lowest level in five months. The capesize index fell 54 points, or 1.7%, to 3,221, its weakest since June 10. No HSFO trades or VLSFO cargo trades were reported in the Singapore trading window on Friday.
Oil prices rose around 1% on Friday, staging a partial recovery after OPEC+ producers rebuffed a US call to raise supply and instead maintained plans for a gradual return of output halted by the pandemic.
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