SINGAPORE: Asia’s cash premiums for 0.5% very low-sulphur fuel oil (VLSFO) dropped on Monday, weighed down by lacklustre buying interests for physical cargoes.
Cash differentials for Asia’s 0.5% VLSFO were at a premium of $19.50 a tonne to Singapore quotes, down from $26.11 per tonne on Friday.
The front-month VLSFO crack dipped to $21.09 per barrel against Dubai crude during Asian trade on Monday, despite weaker crude prices. The crack was at $21.65 per barrel at the end of last week.
The May/June time spread for VLSFO, however, widened its backwardated structure on Monday to trade at $26 a tonne, compared with $23.75 per tonne on Friday, Refinitiv Eikon data showed.
Cash premiums for 380-cst high sulphur fuel oil (HSFO) were at a premium of $14.49 per tonne to Singapore quotes, while cash differentials for 180-cst HSFO fell to a premium of $25.45 per tonne to Singapore quotes.
The front-month barge crack for 380-cst HSFO traded at a discount of $14.74 a barrel to Brent on Monday, compared with minus $13.75 a barrel on Friday.
China has issued 3.25 million tonnes of low-sulphur fuel oil (LSFO) export quotas under the second batch for 2022, three industry sources told Reuters on Monday.
So far China has allocated a total of 9.75 million tonnes of LSFO export quotas for 2022, up 22% compared with the first two batches last year.
Oil prices slipped on Monday alongside equities and weighed down by a strong dollar and demand concerns on the back of continued coronavirus lockdowns in China, the world top oil importer.
China’s crude oil imports grew nearly 7% in April from the same month a year earlier, its first rise in three months, although weakening fuel demand due to COVID-19 lockdowns has dampened throughput at Chinese refineries.
Comments
Comments are closed.