AIRLINK 60.41 Increased By ▲ 0.21 (0.35%)
BOP 6.29 Increased By ▲ 0.04 (0.64%)
CNERGY 4.42 Increased By ▲ 0.36 (8.87%)
DFML 16.05 Increased By ▲ 0.30 (1.9%)
DGKC 69.80 Increased By ▲ 1.55 (2.27%)
FCCL 18.24 Increased By ▲ 0.62 (3.52%)
FFBL 26.09 Increased By ▲ 0.59 (2.31%)
FFL 9.18 Increased By ▲ 0.09 (0.99%)
GGL 10.02 Increased By ▲ 0.17 (1.73%)
HBL 116.60 Increased By ▲ 1.60 (1.39%)
HUBC 112.09 Increased By ▲ 0.09 (0.08%)
HUMNL 6.73 Increased By ▲ 0.18 (2.75%)
KEL 4.62 Increased By ▲ 0.09 (1.99%)
KOSM 4.68 Increased By ▲ 0.16 (3.54%)
MLCF 38.60 Increased By ▲ 0.70 (1.85%)
OGDC 124.17 Increased By ▲ 3.62 (3%)
PAEL 22.20 Increased By ▲ 0.45 (2.07%)
PIAA 11.01 Increased By ▲ 0.11 (1.01%)
PIBTL 6.17 Increased By ▲ 0.15 (2.49%)
PPL 109.35 Increased By ▲ 2.55 (2.39%)
PRL 28.00 Increased By ▲ 0.65 (2.38%)
PTC 11.17 Increased By ▲ 0.62 (5.88%)
SEARL 52.35 Increased By ▲ 0.35 (0.67%)
SNGP 68.05 Increased By ▲ 1.15 (1.72%)
SSGC 11.75 Increased By ▲ 0.22 (1.91%)
TELE 8.07 Increased By ▲ 1.02 (14.47%)
TPLP 11.75 Increased By ▲ 0.19 (1.64%)
TRG 75.80 Decreased By ▼ -4.95 (-6.13%)
UNITY 22.75 Increased By ▲ 1.60 (7.57%)
WTL 1.30 Increased By ▲ 0.03 (2.36%)
BR100 6,557 Increased By 73.1 (1.13%)
BR30 22,393 Increased By 294.4 (1.33%)
KSE100 63,771 Increased By 551.5 (0.87%)
KSE30 21,512 Increased By 206.1 (0.97%)

SINGAPORE: Asia’s high sulphur fuel oil (HSFO) market eased on Wednesday, though expectations of steady feedstock demand this quarter limited declines.

Singapore’s spot 380-cst HSFO premium dipped to $7.50 a tonne, while the market’s front-month refining margin fell to a discount of $11.02 a barrel at the Asia close (0830 GMT).

Despite this, the hi-5 fuel oil spread continues to narrow further, reflecting a supported market for 380-cst HSFO. The spread, which is the price difference between 0.5% low-sulphur fuel oil and 380-cst HSFO, fell day-on-day to $122 a tonne on Wednesday.

Total fuel oil supplies to Asia were pegged at 5.33 million tonnes for April, higher from March, based on Refinitiv Oil Research this week. The flows continued to be dominated by Russian fuel oil, which accounted for more than 60% of total arrivals.

Despite a persistent influx of high-sulphur Russian barrels, the HSFO market is still expected to retain strength amid steady feedstock demand, especially from Chinese independent refineries.

“Most of these barrels are discharged into floating storages in the region, blended with vacuum gasoil before getting re-routed to China as refinery feedstocks,” said Emril Jamil, Refinitiv’s senior analyst for crude and fuel oil.

“The heavy Russian arrivals to China satiate rising and (relatively) cheaper alternative feedstock demand to crude,” he said.

Higher seasonal demand for residual fuel burning in the Middle East would also keep the market supported, trade sources said.

Residual fuel oil stocks at Fujairah rose 2% to 10.20 million barrels (1.61 million tonnes) in the week ended April 10, showed Fujairah Oil Industry Zone data published by S&P Global Commodity Insights.

Comments

Comments are closed.