Asia Fuel Oil-Markets retain strength, east-west hits record high
SINGAPORE, Oct 30 (Reuters) - Asia fuel oil markets ended the month on a stronger note, while east-west price spreads hit a record high on Friday.
Soaring freight costs have sharply widened the east-west spreads, trade sources said.
The November 380-cst high-sulphur fuel oil east-west rose to $155.25 a metric ton at the Asia close on Friday, LSEG data showed.
The equivalent spread for 0.5% low-sulphur fuel oil (VLSFO) also scaled a new high, breaching $200 a ton during Asia trade before easing to $197.93 a ton at the close.
Fuel oil markets in Asia have largely retained strength this month, with spot premiums, margins and timespreads holding firm.
The VLSFO crack ended Friday at a premium near $30.50 a barrel. Meanwhile, the 380-cst HSFO crack climbed to $14.30 a barrel.
INVENTORY DATA
- Fuel oil inventories in the Amsterdam-Rotterdam-Antwerp (ARA) hub fell 18.1% to 762,000 tons in the week to October 29, Dutch consultancy Insights Global data showed.
OTHER NEWS
- Oil prices rose on Friday — set for a fourth monthly gain — as an attack on a tanker in the Strait of Hormuz highlighted the continuing supply risks from the US-Israeli war on Iran, which has entered its eighth month. O/R
- US oil firms ExxonMobil and Chevron have cancelled plans for their executives to travel to the United Arab Emirates' biggest oil show next week, citing security concerns, two sources familiar with the developments told Reuters.
- Russia will extend its diesel export ban until the end of the year while allowing some companies to ship fuel under a quota system to meet its new export commitment to the US, two people familiar with the discussions told Reuters.
- BP posted a record quarterly net profit on Friday, beating expectations as the Iran war boosted energy prices and refining margins, and said it would use the windfall to settle its remaining Deepwater Horizon liabilities..
WINDOW TRADES O/AS
- 180-cst HSFO: No trade
- 380-cst HSFO: No trade
- 0.5% VLSFO: No trade
ASSESSMENTS
FUEL OIL | ||||
CASH ($/T) | ASIA CLOSE | CHANGE | PREV CLOSE | RIC |
Cargo - 180cst | 842.85 | 22.05 | 820.80 | |
Diff - 180cst | 47.92 | 1.75 | 46.17 | |
Cargo - 380cst | 840.20 | 22.20 | 818.00 | |
Diff - 380cst | 49.61 | 0.86 | 48.75 | |
Cargo - 0.5% VLSFO | 931.83 | 16.27 | 915.56 | |
Diff - 0.5% VLSFO | 32.17 | 0.17 | 32.00 |
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 | |