SINGAPORE: The spot cash premium for 0.5% very low sulphur fuel oil (VLSFO) surged to a six-month high on Wednesday as the product traded at a higher value for end February to early March loading.

Arbitrage supplies could dip into the later half of February as the West appears to be shorter on low-sulphur vacuum gasoil supplies, which could lead to an overall tighter blendstocks pool for Asia, trade sources said.

The 0.5% VLSFO cash differential rose to a premium of $28.40 a tonne on Wednesday, while the market’s front-month crack climbed to $14.16 a barrel at the Asia close (0830 GMT).

However, downstream bunker fuel premiums were lagging in recovery as overall prompt supplies remained ample. Premiums for delivered 0.5% VLSFO bunker fuel were in the range of $30-35 earlier this week, according to traders.

Residual fuel oil stocks at Fujairah dipped 2% to 9.71 million barrels (1.53 million tonnes) in the week ended Jan. 30, showed data from the Fujairah Oil Industry Zone published by industry information service S&P Global Commodity Insights

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Kuwait’s National Petroleum Company exported its first shipment of modified diesel fuel to Europe through the Mina al-ahmadi refinery, the oil ministry said on Wednesday.

Exxon Mobil Corp posted a $56 billion net profit for 2022, the company said, taking home about $6.3 million per hour last year, and setting not only a company record but a historic high for the Western oil industry.

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