Asia Fuel Oil-HSFO spot benchmarks extend recovery

SINGAPORE, April 29 (Reuters) - Spot benchmarks for Asia's high sulphur fuel oil (HSFO) market climbed further on Monday, with the cash differential for 380-cst HSFO recovering to a three-month high.

Higher-priced bids for cargoes loading in second-half May emerged, lifting the 180-cst cash differential out of discounted territory to parity versus Singapore quotes, while the 380-cst cash differential was pegged at a premium of $2.25 a metric ton.

Refining cracks for 380-cst HSFO held little changed at discounts of about $8 a barrel, after firming to more than a seven-month high last Friday.

Expectations of lower incoming supplies into Asia have sparked the recent recovery in the HSFO market.

Meanwhile, the very low sulphur fuel oil (VLSFO) market held steady, with cash differential pegged at a premium of $2.85 a ton, while cracks closed at premiums of about $11 a barrel on Monday.

OTHER NEWS

- Oil prices were down on Monday as Israel-Hamas peace talks in Cairo eased fears of a wider conflict in the Middle East, while U.S. inflation data further dimmed the prospects of interest rate cuts anytime soon.

- China's Sinopec posted an 8.9% decline in its first-quarter profit, as rising raw materials costs and more competition hurt its petrochemical business, offsetting higher fuel sales and oil prices.

- A ship controlled by U.S.-sanctioned Russian shipping giant Sovcomflot discharged fuel oil at a western Indian port on Friday, indicating a resumption in the use of SCF vessels to supply Moscow's key market after a brief halt.

- Net profit at Russian oil producer Surgutneftegaz more than tripled to 1.32 trillion roubles ($14.4 billion) in 2023 compared with 320.5 billion a year before, the company said on Saturday, thanks to a currency gain.

WINDOW TRADES

- 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 - 0.5% VLSFO 628.42 -1.74 630.16

Diff - 0.5% VLSFO 2.85 0.20 2.65 <MFO05-SIN-DI

F>

Cargo - 180cst 518.91 1.48 517.43

Diff - 180cst 0.00 1.80 -1.80 <FO180-SIN-DI

F>

Cargo - 380cst 507.52 -1.78 509.30

Diff - 380cst 2.25 0.60 1.65 <FO380-SIN-DI

F>

Bunker (Ex-wharf) Premium - 6.00 0.00 6.00

380cst

Bunker (Ex-wharf) Premium - 6.00 0.00 6.00

0.5% VLSFO

For a list of derivatives prices, including

margins, please double click the RICs below.

Brent M1

180cst M1

180cst M1/M2

180cst M2

Visco M1

Visco M2

380cst M1

380cst M1/M2

380cst M2

Cracks 180-Dubai M1

Cracks 180-Dubai M2

East-West M1

East-West M2

Barges M1

Barges M1/M2

Barges M2

Crack Barges-Brent M1

Crack Barges-Brent M2

(Reporting by Jeslyn Lerh; Editing by Shailesh Kuber)

((jeslyn.lerh@thomsonreuters.com))