SINGAPORE: Cash differentials for Asia’s fuel oil market were little changed on Thursday in thin trade, while residual stocks at Singapore hub fell to a four-week low.

The high sulphur fuel oil (HSFO) market recovered slightly on a narrower contango day-on-day, but remained stuck in discounts as abundant supply continued to weigh on sentiment.

The 180-cst HSFO cash differential rose by 58 cents to a discount of 15 cents per tonne to Singapore quotes on Thursday, while the 380-cst HSFO cash differential climbed by 86 cents to a discount of $4.84 per tonne.

Meanwhile, the very low sulphur fuel oil market softened slightly from the previous day as spot trading momentum faded.

The cash differential for 0.5% VLSFO fell by 75 cents to a premium of $4.25 per tonne to Singapore quotes on Thursday.

Residual fuel oil stocks at key trading hub Singapore fell 3% to a four-week low, as weekly net imports continued to trend lower, official data showed Thursday.

Onshore fuel oil stocks were at 19.42 million barrels in the week to Sept. 14, or 3.06 million tonnes, Enterprise Singapore data showed. Weekly net imports of fuel oil dropped for four straight weeks, standing at 677,000 tonnes.

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