NEW DELHI: Spot fuel oil premiums for high sulphur fuel oil (HSFO) declined on Monday, although a flurry of trades at the Singapore window kept the downside limited.
The 180-cst HSFO cash differential dipped to $3.23 a tonne, while the 380-cst HSFO cash differential fell to $7.35 a tonne.
In physical markets, PetroChina and P66 continued their buying spree for a second week and snapped up a total of 120,000 tonnes of high sulphur grade.
According to FGE estimates, the Singapore Hi-5 (VLSFO-HSFO) spread is expected to widen in April as very low sulphur fuel oil (VLSFO) cracks rebound on lower inflows from the West, while the strength in HSFO cracks should wane with higher availability in the region.
“Thereafter, the Hi-5 spread should narrow from June to August as higher HSFO demand for power generation in the Middle East and South Asia will support HSFO cracks,” analysts at FGE said in a note.
The Kremlin on Monday asked about reports that India is abiding by a price cap on Russian oil exports imposed by Western countries, said that it will be guided its own contacts with India, rather than by news reports.
Strikes blocking fuel deliveries from French refineries continued for a sixth day on Monday, after the Senate voted over the weekend to adopt President Emmanuel Macron’s unpopular pension reform plan.
China’s top refiner Sinopec Corp 600871.SS has started a partial maintenance at its Jinling refinery in Nanjing, according to a post on the company’s official Weibo account.