SINGAPORE: Asia's high-sulphur fuel oil (HSFO) market dropped on Thursday, amid further signs of easing regional utility demand and rising supplies. 180-cst HSFO and 380-cst HSFO front-month time spreads both fell to their lowest levels since July, Refinitiv data in Eikon showed.
Asia's 180-cst HSFO front-month crack fell to $5.95 a barrel below Dubai crude, its widest discount since late July, Refinitiv data showed. In the physical market, 380-cst HSFO cash premiums also fell to their lowest since July at $1.24 a tonne to Singapore quotes amid sharply lower deal activity.
Meanwhile, Singapore residual fuel oil inventories rose 1% in the week ended Oct. 20, marking three consecutive weeks of stock builds, as net import volumes surged, official data showed on Thursday. Onshore fuel oil stocks rose by 138,000 barrels, or about 22,000 tonnes, to 21.69 million barrels, or 3.42 million tonnes, Enterprise Singapore data showed.
But the residual fuel stocks were still 11% lower from year-ago levels and below the 2021 weekly average of 22.78 million barrels. The inventory build came as Singapore's weekly net import volumes jumped to 1.15 million tonnes, up by 148% from the previous week. Weekly figures, however, are volatile.