SINGAPORE, March 23 (Reuters) - Asia's fuel oil premiums were steady to softer on Monday, while trade sources said the latest announcement by the U.S. to waive sanctions on purchases of Iranian oil at sea will have limited impact on the fuel oil market.
Current volumes of Iranian fuel oil on water are much lower compared to Russian volumes, said traders, while Iranian fuel oil exports out of the Strait of Hormuz remain limited.
Asia's high sulphur fuel oil markets have shown signs of cooling due to the influx in Russian imports, with spot premiums easing in recent sessions.
Meanwhile, premiums of very low sulphur fuel oil (VLSFO) inched further lower on Monday, with offers retreating from the previous session.
Cracks for both fuel oil grades were mixed. The April VLSFO contract LFO05SGBRTCMc1 held near $26 a barrel, while the 380-cst HSFO crack FO380BRTCKMc1 rebounded to around $6 a barrel at the Asia close, data compiled by LSEG showed.
REFINERY UPDATES
- China's state-run refiner Sinopec does not intend to buy Iranian oil but is pushing for permission to tap state reserves, a senior executive said on Monday, days after the U.S. waived sanctions for buyers of some Iranian crude.
OTHER NEWS
- Oil prices rose on Monday after Iran's Revolutionary Guards said they would target Israel's power plants and those supplying U.S. bases in the Middle East in retaliation against any attack on its electricity sector.
- The Strait of Hormuz remains open to all shipping except vessels linked to "Iran's enemies", Iranian media reports published on Sunday quoted Iran's representative to the U.N. maritime agency as saying.
- The Baltic Sea ports of Primorsk and Ust-Luga, Russia's largest petroleum export outlets, have suspended exports of crude oil and fuel since Sunday following drone attacks, two industry sources told Reuters on Monday.
- Saudi Aramco, the world's top oil exporter, has cut crude supply to Asian buyers for a second month in April, two sources with knowledge of the matter said on Monday, after the U.S.-Israeli war with Iran disrupted trade via the Strait of Hormuz.
WINDOW TRADES O/AS
- 180-cst HSFO: No trade.
- 380-cst HSFO: No trade.
- 0.5% VLSFO: No trade.
ASSESSMENTS
FUEL OIL | ||||
CASH ($/T) | ASIA CLOSE | CHANGE | PREV CLOSE | RIC |
Cargo - 0.5% VLSFO | 954.05 | 23.64 | 930.42 | MFO05-SIN |
Diff - 0.5% VLSFO | 99.75 | -3.50 | 103.25 | MFO05-SIN-DIF |
Cargo - 180cst | 794.93 | 52.11 | 742.82 | FO180-SIN |
Diff - 180cst | 60.75 | -0.45 | 61.20 | FO180-SIN-DIF |
Cargo - 380cst | 783.84 | 44.94 | 738.90 | FO380-SIN |
Diff - 380cst | 53.45 | -7.20 | 60.65 | FO380-SIN-DIF |
Bunker (Ex-wharf) Premium - 380cst | 54.00 | -7.00 | 61.00 | |
Bunker (Ex-wharf) Premium - 0.5% VLSFO | 100.00 | -4.00 | 104.00 |
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 Ronojoy Mazumdar)
((jeslyn.lerh@thomsonreuters.com))
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