HSFO discounts widen while contango deepens
Asia's high sulphur fuel oil (HSFO) spot market widened on discounts on Monday, while the market structure deepened on contango for the prompt months.
Singapore 380-cst HSFO cash differential was pegged at a discount wider than $7 a metric ton, while the intermonth spread between balance-July and August softened to a contango of $5.75 amid sell-offs.
HSFO cracks also slumped, closing near discounts of $5 a barrel. (FO380BRTCKMc1)
The market in Asia is well supplied for the month. This has been weighing on spot benchmarks, despite July being a seasonally strong period for summer demand in the Middle East.
Meanwhile, the very low sulphur fuel oil (VLSFO) market also softened, with cash premiums extending a slide from last week, while margins held range-bound near $10 a barrel amid limited fresh drivers. (LFO05SGBRTCMc1)
The hi-5 spread (FO05-380SGMc1), which reflects the premium of VLSFO over 380-cst HSFO, widened beyond $96 a metric ton, the highest since January, LSEG data showed.
BUNKER DATA
Sales of marine bunker fuel in Singapore dipped slightly in the first half of 2025, official data showed on Monday, as shipping uncertainties in the wake of global tariffs capped demand, particularly in the first quarter.
Meanwhile, alternative fuel sales - which include liquefied natural gas and bio-blended marine fuels - more than doubled to over 1 million tons in just half a year, the data showed.
OTHER NEWS
- Oil prices rose on Monday and reached their highest level in three weeks, as investors eyed further U.S. sanctions on Russia that may affect global supplies, while higher oil imports by China also offered support.
- Russia's seaborne oil product exports in June were down 3.4% from May at 8.98 million metric tons amid planned domestic refinery maintenance and strong domestic demand, data from industry sources and Reuters calculations showed.
- Ten mariners were rescued after Houthi militants sank a Greek ship last week and have arrived in Saudi Arabia, maritime security sources said on Monday, after rescuers ended their search for the remaining crew.
- Global commodities trading firm Trafigura said an employee at its Indonesian subsidiary has been cooperating with the authorities in a corruption investigation involving state energy company PT Pertamina.
WINDOW TRADES
- 180-cst HSFO: One trade
- 380-cst HSFO: No trade
- 0.5% VLSFO: No trade
ASSESSMENTS
FUEL OIL | ||||
CASH ($/T) | ASIA CLOSE | CHANGE | PREV CLOSE | RIC |
Cargo - 0.5% VLSFO | 514.89 | 9.94 | 504.95 | (MFO05-SIN) |
Diff - 0.5% VLSFO | 4.45 | -0.50 | 4.95 | (MFO05-SIN-DIF) |
Cargo - 180cst | 414.53 | -1.44 | 415.98 | (FO180-SIN) |
Diff - 180cst | -5.25 | -1.60 | -3.65 | (FO180-SIN-DIF) |
Cargo - 380cst | 402.60 | -1.82 | 404.43 | (FO380-SIN) |
Diff - 380cst | -7.05 | -1.00 | -6.05 | (FO380-SIN-DIF) |
Bunker (Ex-wharf) Premium - 380cst | 1.00 | 0.50 | 0.50 | |
Bunker (Ex-wharf) Premium - 0.5% VLSFO | 7.00 | -0.50 | 7.50 |
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) |
