Asia Fuel Oil-Markets little changed, hi-5 narrows week-on-week

SINGAPORE, Dec 20 (Reuters) - Asia fuel oil markets were largely stable on Friday in thin trade, while a key spread between two benchmark grades narrowed from last week.

The premium of very low sulphur fuel oil (VLSFO) over 380-cst high sulphur fuel oil (HSFO), commonly known as the hi-5

, closed below $90 a metric ton, narrowing about 7%, LSEG data showed.

The spread has shown a largely narrowing trend through the fourth quarter due to a weakening market for VLSFO.

Selling interest persisted in the spot VLSFO market, with multiple offers for January prevailing at narrow premiums to cargo quotes on Friday.

Meanwhile, the HSFO spot market held stable, though the derivatives front continued to see strength emerging for intermonth spreads trading.

Refining cracks for both fuel oil grades also extended weekly gains, with HSFO cracks firming via a steeper extent, based on LSEG data.

Singapore 380-cst HSFO cracks closed at discounts narrower than $4 per barrel on Friday, while VLSFO cracks closed at premiums above $10 per barrel.

INVENTORY DATA

- Fuel oil inventories in the ARA inched 1% lower to 1.28 million tons in the week to Dec. 19, data from Dutch consultancy Insights Global showed.

OTHER NEWS

- Oil prices fell on Friday on worries about demand growth in 2025, especially in top crude importer China, putting global oil benchmarks on track to end the week down nearly 3%.

- U.S. crude oil exports to northwest Europe are likely to slip early next year after hitting a record high in November, as the arbitrage for transatlantic shipments has slammed shut and freight rates have climbed, analysts said this week.

- China's fuel oil imports hit their highest in seven months for November, customs data showed on Friday, as more supply was drawn over for the bunker pool, according to industry sources.

- Venezuela's state oil company PDVSA and India's Reliance Industries have resumed an oil swap that had been paused due to U.S. sanctions on the South American country, an internal PDVSA document showed.

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 526.58 -2.03 528.62

Diff - 0.5% VLSFO 1.90 0.00 1.90 <MFO05-SIN-DI

F>

Cargo - 180cst 447.38 -2.49 449.87

Diff - 180cst 4.05 0.10 3.95 <FO180-SIN-DI

F>

Cargo - 380cst 438.61 -2.05 440.66

Diff - 380cst 4.00 -0.25 4.25 <FO380-SIN-DI

F>

Bunker (Ex-wharf) Premium 9.50 0.50 9.00

- 380cst

Bunker (Ex-wharf) Premium 6.50 0.50 6.00

- 0.5% VLSFO

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

(Reporting by Jeslyn Lerh; Editing by Varun H K)

((jeslyn.lerh@thomsonreuters.com))