SINGAPORE: Cash premiums and refining margins for the very low sulphur fuel oil (VLSFO) market in Asia weakened further on Tuesday amid an influx of arbitrage supplies. Total supplies to Asia are expected to reach about 6 million tonnes in February, firming from January’s 4-4.5 million tonnes, latest assessments by Refinitiv Oil Research showed this week.
The influx was led by stronger arrivals from both the West and the Middle East, as the arbitrage window remained open amid a wide East-West price spread.
The cash differential for 0.5% VLSFO fell to $8 a tonne on Tuesday, hitting a six-week low. The refining margin for the product was at $9.23 a barrel at the Asia close, sliding from the previous session. Oil prices fell on Tuesday as concerns about a global economic slowdown that would reduce demand prompted investors to take profits on the previous day’s gains, outweighing supply curbs. The Global Centre for Maritime Decarbonisation has completed trials on two supply chains of biofuel blends for vessel bunkering at Singapore, the centre said on Tuesday.
South Korean refiner GS Caltex plans to shut one of its four crude distillation units (CDUs) for maintenance in March, several sources close to the matter said on Tuesday.
Equinor has agreed to sell its South Riding Point oil terminal in the Bahamas to Estonian logistics and investment company Liwathon Group, the Norwegian oil and gas producer said on Tuesday.
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