SINGAPORE: Asia’s spot cash differentials for fuel oil fell on Monday amid steady selling interest. The 180-cst high sulphur fuel oil (HSFO) market had weakened back into a discount after holding in premiums since mid-November, with its cash differential falling to a discount of $1.94 a tonne to Singapore quotes on Monday. Meanwhile, the 380-cst HSFO cash differential slid $2.23 to a premium of $3.50 a tonne, as an ongoing influx of Russian high-sulphur barrels to East Asia is expected to cap price recovery. The very low sulphur fuel oil (VLSFO) market also softened at the start of the new trading week, as selling interest persisted amid a backwardated market into early 2023.
The 0.5% VLSFO cash differential fell $2.08 to a premium of $17.98 a tonne to Singapore quotes on Monday, with a trade done for loading between end-December to early-January.
Oil prices edged up on Monday after OPEC+ nations held their output targets steady ahead of a European Union ban and a price cap kicking in on Russian crude.
The G7 price cap on Russian seaborne oil came into force on Monday as the West tries to limit Moscow’s ability to finance its war in Ukraine, but Russia has said it will not abide by the measure even if it has to cut production. Glencore said on Monday it would pay $180 million to the Democratic Republic of Congo as part of an agreement covering all present and future claims “arising from any alleged acts of corruption” by the miner in the country between 2007 and 2018. Saudi Arabia’s stock exchange said it was launching a market-making framework for its stock and derivatives markets to help ensure liquidity and raise price-determination efficiency.
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