VLSFO flips into premium while cracks rebound from recent lows
Asia's spot differential for very low sulphur fuel oil (VLSFO) recovered into a small premium on Monday, while cracks traded higher following a sharp decline last week.
Lifted by a stronger trade for prompt dates, the Singapore VLSFO cash differential was pegged at a premium of 50 cents a metric ton, after holding in discounts since early September.
Singapore October VLSFO cracks (LFO05SGBRTCMc1) also traded higher, closing at a premium near $6.65 a barrel on Monday, based on data compiled by LSEG. The cracks rebounded after hitting their lowest since January 2023 as of last week.
In contrast, high sulphur fuel oil (HSFO) market retained a bearish tone, with the 380-cst cash discount widening, while the product's crack (FO380BRTCKMc1) hovered near at a discount of $5 a barrel.
BUNKER DATA
Marine bunker fuel sales in Singapore maintained strong momentum in August, holding at their highest levels since December 2023, according to official data released on Monday.
Despite stronger sales volumes, premiums for both delivered VLSFO and MFO have remained rangebound month-on-month, as the market continues to be oversupplied, trading sources said.
OTHER NEWS
- Oil prices edged higher on Monday as investors assessed the impact of Ukrainian drone attacks on Russian refineries, while U.S. President Donald Trump said he was prepared to impose sanctions on Russia if NATO nations stop buying Russian oil.
- China's crude oil throughput in August rose 7.6% from a year earlier, official data showed on Monday, as state-owned refineries maintained high operating rates, according to consultancies.
- Mexican state oil company Pemex revised its October term pricing formulas for crude shipped to customers in the Americas, Europe and Asia, the company's trading arm said.
- Group of Seven nations' finance ministers discussed in a call on Friday further sanctions on Russia and possible tariffs on countries that they consider "enabling" its war in Ukraine, as the U.S. called on its allies to impose tariffs on purchasers of Russian oil.
WINDOW TRADES
- 180-cst HSFO: No trade
- 380-cst HSFO: One trade
- 0.5% VLSFO: One trade
ASSESSMENTS
FUEL OIL | ||||
CASH ($/T) | ASIA CLOSE | CHANGE | PREV CLOSE | RIC |
Cargo - 0.5% VLSFO | 468.08 | 14.85 | 453.23 | (MFO05-SIN) |
Diff - 0.5% VLSFO | 0.50 | 2.00 | -1.50 | (MFO05-SIN-DIF) |
Cargo - 180cst | 402.37 | 8.19 | 394.18 | (FO180-SIN) |
Diff - 180cst | -1.65 | 0.20 | -1.85 | (FO180-SIN-DIF) |
Cargo - 380cst | 392.42 | 7.31 | 385.11 | (FO380-SIN) |
Diff - 380cst | -1.60 | -0.85 | -0.75 | (FO380-SIN-DIF) |
Bunker (Ex-wharf) Premium - 380cst | 3.00 | 0.00 | 3.00 | |
Bunker (Ex-wharf) Premium - 0.5% VLSFO | 4.00 | 0.00 | 4.00 |
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) |
