SINGAPORE: Asia’s cash premiums and margins for fuel oil were range-bound on Tuesday amid thin trading momentum.
The cash premium for 0.5% very low sulphur fuel oil (VLSFO) held steady at $6.25 a tonne, while front-month margin eased to a premium of $7.68 a barrel at 0830 GMT.
The spot market looks slated to remain in a range of single-digit premiums, with just a sole trade emerging for VLSFO as with the previous day.
Meanwhile, the cash premium for 380-cst high sulphur fuel oil (HSFO) closed at $5.50 a tonne, while front-month margin climbed further to a discount of $8.62 a barrel. In recent tenders, India’s HPCL sold 26,000 tonnes of HSFO for loading at Vizag between May 24 and 26.
Oil prices fell on Tuesday, with the market cautious ahead of US inflation figures for April, which will be key to the Federal Reserve’s next interest rate decision.
China’s crude oil imports fell in April to the lowest level since January, customs data showed on Tuesday, as high inventories, refinery maintenance and a weaker domestic economic rebound weighed on demand.
The United Arab Emirates’ energy minister Suhail al-Mazrouei said on Tuesday that additional voluntary output cuts by the OPEC+ group were implemented to balance the oil market.
Saudi oil giant Aramco’s first-quarter net profit dropped 19% from a year earlier to 119.54 billion riyals ($31.88 billion), it said on Tuesday, due to lower crude prices.
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