SINGAPORE: Asia's cash premiums for mainstay 380-cst high-sulphur fuel oil dipped on Monday, but were still close to their highest level in three months, amid expectations for tighter near-term supplies.
Cash premiums for 380-cst high-sulphur fuel oil (HSFO) were at $3.05 a tonne to Singapore quotes, compared with $3.30 a tonne on Friday.
The front-month time spread was trading at about $10.50 a tonne on Monday, up from $10 a tonne in the previous session, Refinitiv Eikon data showed.
Refining margins for the more actively traded 380-cst barge crack to Brent crude fell to minus $7.09 a barrel during Asian trading hours, down from minus $6.56 per barrel on Friday, according to Refinitiv Eikon data.
NAPHTHA MARGINS LOWEST IN OVER A DECADE
Profit margins in Asia for naphtha have turned negative and are at their lowest in over decade amid a weakening global economy and tepid demand due to large-scale processing unit outages.
The benchmark naphtha margin last week closed at minus $15.38 a tonne to Brent crude, the lowest since December 2008, when the financial crisis roiled the global economy.
The 124pc slide in profit margins from their March-peak makes naphtha, a petroleum feedstock used in the refining industry, the worst-performing margin among all oil products.
SINGAPORE WINDOW TRADES
Four fuel oil trades Glencore sold 20,000 tonnes of 380-cst HSFO to P66 for June 25-29 loading at a premium of $2.50 a tonne to Singapore quotes.
Vitol bought two separate cargoes of 20,000 tonnes of 380-cst HSFO each from Glencore for June 25-29 loading at a premium of $2 a tonne to Singapore quotes.
Vitol bought another 20,000 tonnes of 380-cst HSFO from Gunvor for June 25-29 loading at a premium of $2 a tonne to Singapore quotes.
OTHER NEWS
China's crude oil imports slipped 8pc in May from an all-time peak hit the month before, customs data showed, as the world's top importer of the commodity curbed shipments from Iran amid tightening US sanctions on that country.
China's crude imports dropped to 40.23 million tonnes in May from 43.73 million tonnes in April, General Administration of Customs data showed on Monday.
Oil prices rose on Monday after Saudi Arabia said producer club OPEC and Russia should keep supplies restricted at current levels, and on relief that the United States withdrew a tariff threat against Mexico, removing a cloud over the global economy.
Iran has no plans to leave the Organization of the Petroleum Exporting Countries despite being treated like an enemy by some fellow members, Oil Minister Bijan Zanganeh said in an interview published on Saturday.
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