ReutersReuters

Asia Fuel Oil-Cash premiums extend gains on tight supply

Asia's cash premiums for fuel oil extended gains on Monday as supply remains tight, with differentials for 0.5% very low-sulphur fuel oil (VLSFO) scaling new highs for a second straight session.

The cash premiums for Asia's 0.5% VLSFO (MFO05-SIN-DIF) were at $43.66 a tonne to Singapore

quotes, extending to a new record high, according to Reuters data which goes back to late 2019.

The outlook for arbitrage supplies into Asia is expected to stay tight into May and June, as European refiners exported less fuel oil and kept more barrels for domestic use, amid a shortfall in Russian supplies following the Ukraine conflict.

High-sulphur fuel oil (HSFO) cash differentials continued to extend a slight rebound from late last week in view of stronger seasonal demand from south Asia into summer, although prospects of more incoming HSFO barrels capped gains.

Cash differentials for 180-cst HSFO (FO180-SIN-DIF) climbed to a discount of 51 cents per tonne to Singapore quotes on Monday, narrowing versus a discount of $1.79 per tonne last Friday. Meanwhile, cash differentials for 380-cst HSFO (FO380-SIN-DIF) rose to $5.30 per tonne to Singapore quotes, compared with $4.88 per tonne last Friday.

WINDOW TRADES

- No HSFO trades, one VLSFO trade was reported

OTHER NEWS

- Oil prices gained on Monday with U.S. fuel demand, tight supply and a slightly weaker U.S. dollar supporting the market, as Shanghai prepares to reopen after a two-month lockdown that fuelled worries about a sharp slowdown in growth.

- Japan's top oil refiner Eneos Holdings Inc (JHJ) has received higher requests from local utilities for fuel oil to be used in oil-fired power plants for April-September, but it will be able to meet only a part of the request, its chairman said.

ASSESSMENTS

FUEL OIL

CASH ($/T)

ASIA CLOSE

Change

% Change

Prev Close

RIC

Cargo - 0.5% VLSFO

893.54

8.57

0.97

884.97

(MFO05-SIN)

Diff - 0.5% VLSFO

43.66

0.94

2.20

42.72

(MFO05-SIN-DIF)

Cargo - 180cst

659.37

16.56

2.58

642.81

(FO180-SIN)

Diff - 180cst

-0.51

1.28

-71.51

-1.79

(FO180-SIN-DIF)

Cargo - 380cst

631.10

13.80

2.24

617.30

(FO380-SIN)

Diff - 380cst

5.30

0.42

8.61

4.88

(FO380-SIN-DIF)

Bunker (Ex-wharf)- 380cst

640.50

9.70

1.54

630.80

(BK380-B-SIN)

Bunker (Ex-wharf) Premium

9.40

-4.10

-30.37

13.50

For a list of derivatives prices, including margins, please double click the RICs below.

Brent M1

(BRENTSGMc1)

180cst M1

(FO180SGSWMc1)

180cst M1/M2

(FO180SGSDMc1)

180cst M2

(FO180SGSWMc2)

Visco M1

(FOVISSGDFMc1)

Visco M2

(FOVISSGDFMc2)

380cst M1

(FO380SGSWMc1)

380cst M1/M2

(FO380SGSDMc1)

380cst M2

(FO380SGSWMc2)

Cracks 180-Dubai M1

(FO180SGCKMc1)

Cracks 180-Dubai M2

(FO180SGCKMc2)

East-West M1

(FOSGEWMc1)

East-West M2

(FOSGEWMc2)

Barges M1

(HFOFARAAMc1)

Barges M1/M2

(HFOFARAASMc1)

Barges M2

(HFOFARAAMc2)

Crack Barges-Brent M1

(HFOFARAACMc1)

Crack Barges-Brent M2

(HFOFARAACMc2)

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