SINGAPORE: Asia’s cash premium for very-low sulphur fuel oil (VLSFO) jumped to 11-week highs on Tuesday, as stronger bids emerged on the first day of a new trading month.
The 0.5% VLSFO cash premium spiked to $12.25 a tonne over Singapore quotes, as stronger buying interest emerged for loading dates in the second half of May.
This compares higher with single-digit premiums seen for the whole of April.
Meanwhile, the market’s front-month margin also climbed from the previous session. The crack closed higher at a premium of $9.15 a barrel at 0830 GMT on Tuesday.
High sulphur fuel oil’s cash premium was little changed at $6.50 a tonne, though front-month margin for 380-cst HSFO rose to a discount of $9.32 a barrel.
Fuel oil inventories in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell 3% to 1.24 million tonnes in the week ended April 27, data from Dutch consultancy Insights Global showed.
Oil prices fell in Asian trade on Tuesday, as weak economic data from China and expectations of a US interest rate increase weigh on the market.
Russian exports of ultra low-sulphur diesel from the Baltic Sea port of Primorsk are set to fall by 29.5% month-on-month on a daily basis in May to 1.18 million tonnes, from 1.62 million tonnes scheduled for April, two traders said on Tuesday.
Top global ship fuelling hub Singapore is unlikely to be ready for ammonia bunkering by the end of this year, Singapore’s Maritime and Port Authority (MPA) said, while industry players have also raised concerns about feasibility.
BP made a profit of $5 billion in the first quarter of 2023, up from the previous three months on the back of strong oil and gas trading, but the company’s shares fell as it slowed a share buyback programme.
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