SINGAPORE: Asia’s front-month crack for 0.5% very low-sulphur fuel oil (VLSFO) climbed on Friday, supported by active buying interests for physical cargoes amid tight supplies.
The front-month VLSFO crack rose to $12.22 per barrel against Dubai crude during Asian trade on Friday, up from $12.11 per barrel a day earlier. The crack, however, has slipped 1.6% this week.
Singapore residual fuel oil inventories have dropped to a 3-1/2 month low this week, official data showed on Thursday. Cash differentials for Asia’s 0.5% VLSFO were at a premium of $1.21 a tonne to Singapore quotes on Friday, compared with $1.25 per tonne on Thursday. Meanwhile, Asia’s cash premium for 180-cst high sulphur fuel oil (HSFO) dipped $1.32 per tonne to Singapore quotes on Friday, hurt by two weaker deals in the physical trade window.
Fuel oil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell 14.3% to 1.2 million tonnes in the week to July 7, data from Dutch consultancy Insights Global showed. The data showed ARA gasoil inventories dropped 2.6% to 2.3 million tonnes.
Vitol bought 20,000-tonnes of 180-cst high-sulphur fuel oil (HSFO) from Glencore at a premium of $1 per tonne to Singapore quotes.
Chevron sold 20,000-tonnes of 180-cst HSFO to Vitol at a premium of 50 cents per tonne to Singapore quotes.
Gunvor sold a 40,000-tonne cargo of 0.5% VLSFO to Freepoint at a premium of $2.50 per tonne to August Singapore quotes.
Oil prices rose for a second day on Friday as data showed a draw in US inventories, but were heading for a weekly loss amid uncertainty over global supplies after an OPEC+ impasse.
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