SINGAPORE: Steady fuel oil supplies from Russia to Asia have capped recovery in refining margins, with cracks remaining under pressure in December so far, data showed Tuesday.
The Singapore front-month January crack for 0.5% very low sulphur fuel oil (VLSFO) had fallen more than 5% since the start of the month, and was at a premium of $12.29 a barrel to Dubai quotes at the Asia close (0830 GMT) on Tuesday.
Total arbitrage supplies to East Asia, including loadings from Russian ports, are expected to stay firm in December at around 3 million tonnes, Refintiv ship-tracking data showed.
The steady arrivals have also kept spot 0.5% VLSFO cash premiums range-bound between $15 a tonne and $20 a tonne in recent trading sessions.
Meanwhile, the cash differential for 380-cst high sulphur fuel oil (HSFO) fell for a third consecutive session to a premium of $2.62 a tonne on Tuesday.
Oil rebounded in Asia trade on Tuesday as sanctions on Russian seaborne crude oil eased oversupply concerns, while the relaxing of China’s covid curbs bolstered the demand outlook.
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