Asia Fuel Oil-HSFO differential inches up though market retains contango

Reuters12-22 17:56
Asia Fuel Oil-HSFO differential inches up though market retains contango

SINGAPORE, Dec 22 (Reuters) - Asia's spot differential for 380-cst high sulphur fuel oil (HSFO) rose slightly on Monday after some trades emerged, though the market continued to hold in a contango for prompt months.

Two deals for 380-cst HSFO came up following a trading lull on the window for two weeks, based on data from market sources. These were done at discounts to cargo quotes, though the benchmark differential firmed slightly.

However, HSFO's market structure remained steadily in a contango, indicative of ample prompt supply.

Meanwhile, very low-sulphur fuel oil (VLSFO) held range-bound from the previous session, even as its contango narrowed.

Cracks for VLSFO were stable at premiums near $4.25 a barrel in thin trading, while HSFO cracks FO380BRTCKMc1 dipped to discounts of about $7 a barrel, LSEG data showed on Monday.

CHINA DATA

China's imports of fuel oil rose 15% from a month earlier to 2.15 million metric tons in November, customs data showed.

Meanwhile, China's exports of fuel oil, mostly for low-sulphur marine fuel bunkering, climbed 29% month-on-month to 1.58 million metric tons in November.

OTHER NEWS

- Oil prices rose on Monday after officials said the U.S. had intercepted an oil tanker in international waters off the coast of Venezuela, raising fresh supply uncertainty. O/R

- Chinese oil major CNOOC Ltd said on Monday that an offshore oil project in the South China Sea had commenced production.

- Indonesia announced a round of oil and gas block tenders on Monday, offering eight new blocks to contractors, an energy ministry document showed, amid efforts to increase energy reserves.

- A Ukrainian drone attack damaged two vessels, two piers and sparked a fire in a village on the Black Sea coast in Russia's Krasnodar region, regional authorities said on Monday.

WINDOW TRADES O/AS

- 180-cst HSFO: No trade

- 380-cst HSFO: Two trades

- 0.5% VLSFO: No trade

ASSESSMENTS

FUEL OIL

CASH ($/T)

ASIA CLOSE

CHANGE

PREV CLOSE

RIC

Cargo - 0.5% VLSFO

410.73

7.32

403.41

MFO05-SIN

Diff - 0.5% VLSFO

-0.30

0.15

-0.45

MFO05-SIN-DIF

Cargo - 180cst

341.80

4.83

336.97

FO180-SIN

Diff - 180cst

-5.00

-0.15

-4.85

FO180-SIN-DIF

Cargo - 380cst

337.57

5.22

332.35

FO380-SIN

Diff - 380cst

-2.80

0.15

-2.95

FO380-SIN-DIF

Bunker (Ex-wharf) Premium - 380cst

0.50

0.00

0.50

Bunker (Ex-wharf) Premium - 0.5% VLSFO

2.50

0.00

2.50

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

180cst M1

FO180SGSWMc1

180cst M1/M2

FO180SGSDMc1

380cst M1

FO380SGSWMc1

380cst M1/M2

FO380SGSDMc1

0.5% VLSFO M1

LFO05FSGMc1

0.5% VLSFO M1/M2

LFO05FSGSMc1

Cracks 180cst-Brent M1

FO180BRTCKMc1

Cracks 180cst-Dubai M1

FO180SGCKMc1

Cracks 380cst-Brent M1

FO380BRTCKMc1

Cracks 380cst-Dubai M1

FO380DUBCKMc1

Cracks 0.5% VLSFO-Brent M1

LFO05SGBRTCMc1

Cracks 0.5% VLSFO-Dubai M1

LFO05SGDUBCMc1

Visco 180cst/380cst M1

FOVISSGDFMc1

Hi-5 0.5% VLSFO/380cst M1

FO05-380SGMc1

GoFo 10PPM/0.5% VLSFO M1

GO10FO05FSGMc1

East-West M1

FOSGEWMc1

Barges M1

HFOFARAAMc1

Barges M1/M2

HFOFARAASMc1

Crack Barges-Brent M1

HFOFARAACMc1

(Reporting by Jeslyn Lerh; Editing by Leroy Leo)

((jeslyn.lerh@thomsonreuters.com))

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