SINGAPORE: The spot cash differential for 180-cst high sulphur fuel oil (HSFO) flipped into a premium on Monday as the supply pool for viscosity cutter stocks tightened recently, trade sources said.
Asia’s spot 180-cst HSFO cash differential climbed for a seventh consecutive session to a premium of 96 cents a tonne on Monday, after hovering in discounted territory since end-December last year.
Viscosity cutter stocks, which are used to blend high-viscosity material into bunker fuels, have tightened for the fuel oil pool as refining incentive shifted towards other distillate products amid lower margins for fuel oil.
The front-month viscosity spread, which is the difference between 180-cst HSFO and 380-cst HSFO, widened to $19 a tonne at the Asia close (0830 GMT), a one-month high.
For very low-sulphur fuel oil (VLSFO), cash differentials were range-bound in premiums of the low $10s over Singapore quotes. The 0.5% VLSFO cash differential stood at $11.50 a tonne on Monday.
Oil prices rose on Monday amid optimism over China’s demand recovery, concerns that underinvestment will crimp future oil supply and as major producers keep output limits in place.
China’s commerce ministry has met independent oil refiners to discuss their deals with Russia, five sources with knowledge of the matter said, imports which have saved Chinese buyers billions of dollars.
India’s Russian oil imports climbed to a record 1.4 million barrels per day (bpd) in January, up 9.2% from December, with Moscow still the top monthly oil seller to New Delhi, followed by Iraq and Saudi Arabia, data from trade sources showed.
Cyprus is speaking to other European Union member states to shore up support for the shipping industry hit by sanctions on Russia, its shipping minister said.
Comments
Comments are closed.