SINGAPORE: Asia's 0.5% very low-sulphur fuel oil (VLSFO) market was largely steady after a second straight day of muted trade liquidity in the physical and paper markets, trade sources said. The front-month VSLFO crack to Dubai crude edged 5 cents lower to $11.47 a barrel on Tuesday, Refinitiv data in Eikon showed.
This came despite crude oil prices retreating on Tuesday, after Brent rose above $75 a barrel for the first time since April 2019 and as OPEC+ begins discussions on raising oil production.
No VLSFO or high-sulphur fuel oil (HSFO) cargo trades were reported in the Singapore trading window.
Marine fuel sales volumes in the United Arab Emirates' (UAE) bunkering and oil storage hub of Fujairah slipped 1% in May to a two-month low of 668,000 cubic meters, data from S&P Global Platts showed.
The lower sales volumes were led by fewer sales of low-sulphur marine fuels totalling 558,000 cubic meters in May, down nearly 1% from the 561,000 cubic meters reported in April, Reuters calculations showed.
380-cst high-sulphur fuel oil (HSFO) sales fell to a four-month low of 110,000 cubic meters in May, down 3% from April's 113,000 cubic meters, the S&P Global Platts data showed.
OPEC+ is discussing a further easing of oil output cuts from August as oil prices rise on demand recovery, but no decision had been taken yet on the exact volume to bring back to the market, two OPEC+ sources said on Tuesday.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, is returning 2.1 million barrels per day (bpd) to the market from May through July as part of a plan to gradually unwind last year's record oil output curbs. OPEC+ meets next on July 1.
"It is highly possible to increase gradually from August," said one of the sources, adding that no final decision had been made and the exact volumes are yet to be agreed on.