Asia Fuel Oil-HSFO extends strength with crack up for fifth session

By Reuters News

SINGAPORE, Oct 15 (Reuters) - Asia's high sulphur fuel oil (HSFO) market strengthened further on Thursday, with the crack trading higher for the fifth consecutive session.

The 380-cst HSFO/Brent crack closed at about $14 a barrel, LSEG data showed. Prompt timespreads for the product also traded into stronger backwardation.

Downstream marine fuel premiums remained elevated, though the market for very low sulphur fuel oil (VLSFO) showed some signs of steadying.

Market sources said that blendstock availability has improved for VLSFO, though barges for bunkers were tighter, lending a floor to premiums.

Meanwhile, VLSFO crack gained day-on-day to breach $26 a barrel on Thursday.

INVENTORY DATA

- Oil product stockpiles held in Asia's key fuel trading hub of Singapore rose for a second week and jumped to their highest in a month, official data showed on Thursday, as stocks of refined fuel accumulated. O/SING1

OTHER NEWS

- Oil prices edged higher on Wednesday after an attack on the headquarters of Saudi Arabia's state-owned oil company, while Iranian officials told Reuters they were deploying new tactics to target ships, seeking to keep oil prices high and influence the US midterm elections. O/R

- Bunker Holding, the world's largest marine fuel seller by volume, expects a slight decline in global sales this year, Chief Operating Officer Mikkel Kannegaard said on Thursday.

- PetroChina International on Thursday will use liquefied natural gas to bunker a vessel in Singapore for the first time, Chairman Wu Junli said, widening the alternative-fuel options it can offer shipowners at the world's top refuelling port.

- The Trump administration is considering easing sanctions on so-called shadow fleet vessels that have transported oil and petroleum products from countries including Russia, Iran and Venezuela, in an effort to reduce record-high global freight rates, a US official said on Wednesday.

WINDOW TRADES O/AS

- 180-cst HSFO: No trade

- 380-cst HSFO: No trade

- 0.5% VLSFO: One trade

ASSESSMENTS

FUEL OIL





CASH ($/T)

ASIA CLOSE

CHANGE

PREV CLOSE

RIC

Cargo - 180cst

812.05

7.27

804.78

Diff - 180cst

50.14

2.69

47.45

Cargo - 380cst

803.77

4.82

798.95

Diff - 380cst

49.40

1.00

48.40

Cargo - 0.5% VLSFO

844.13

-2.45

846.58

Diff - 0.5% VLSFO

24.92

1.92

23.00

For a list of derivatives prices, please refer to ENSWAP/INFO or the RICs below:

180cst M1

180cst M1/M2

380cst M1

380cst M1/M2

0.5% VLSFO M1

0.5% VLSFO M1/M2

Cracks 180cst-Brent M1

Cracks 180cst-Dubai M1

Cracks 380cst-Brent M1

Cracks 380cst-Dubai M1

Cracks 0.5% VLSFO-Brent M1

Cracks 0.5% VLSFO-Dubai M1

Visco 180cst/380cst M1

Hi-5 0.5% VLSFO/380cst M1

GoFo 10PPM/0.5% VLSFO M1

East-West M1

Barges M1

Barges M1/M2

Crack Barges-Brent M1

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