SINGAPORE: Cash differentials for high-sulphur fuel oil (HSFO) kicked off August on a steady to firmer note, supported by tight prompt supply at some bunkering ports in Asia, while bunker loadings at Fujairah remained on halt as of Monday following weather disruptions last week.
The 380-cst HSFO cash differential inched higher for a fourth straight trading session to a premium of $6.16 per tonne over Singapore quotes on Monday, while the 180-cst HSFO cash differential rose $1.34 from the previous session to $2.86 per tonne.
Meanwhile, bunker loadings at Fujairah are likely to remain halted for the rest of this week following last week’s weather disruptions, market sources said Monday.
The supply and logistical constraints are expected to keep Fujairah bunker fuel premiums elevated for the coming days, while some demand could be diverted away to the port of Oman, sources added.
Oil prices dropped on Monday, as weak manufacturing data from China and Japan for July weighed on the outlook for demand, while investors braced for this week’s meeting of officials from OPEC and other top producers on supply adjustments.
Gasoline and gasoil sales by Indian state refiners in July fell from a month earlier as monsoon rains restricted mobility and construction work while high inflation curtailed overall demand for goods, preliminary sales data shows.
Australia said on Monday it would decide whether to curb exports of liquefied natural gas (LNG) after a watchdog urged restrictions, warning one of the world’s biggest suppliers of the fuel could face a shortfall and soaring prices next year.
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