0.5% VLSFO premium spikes to six-month high
The spot cash premium for 0.5% very low sulphur fuel oil (VLSFO) surged to a six-month high on Wednesday as the product traded at a higher value for end February to early March loading.
Arbitrage supplies could dip into the later half of February as the West appears to be shorter on low-sulphur vacuum gasoil supplies, which could lead to an overall tighter blendstocks pool for Asia, trade sources said.
The 0.5% VLSFO cash differential (MFO05-SIN-DIF) rose to a premium of $28.40 a tonne on Wednesday, while the market's front-month crack (LFO05SGDUBCMc1) climbed to $14.16 a barrel at the Asia close (0830 GMT).
However, downstream bunker fuel premiums were lagging in recovery as overall prompt supplies remained ample. Premiums for delivered 0.5% VLSFO bunker fuel were in the range of $30-35 earlier this week, according to traders.
FUJAIRAH INVENTORIES
Residual fuel oil stocks at Fujairah dipped 2% to 9.71 million barrels (1.53 million tonnes) in the week ended Jan. 30, showed data from the Fujairah Oil Industry Zone published by industry information service S&P Global Commodity Insights
OTHER NEWS
- Oil prices rose on Wednesday as signs of slowing inflation in the United States eased fears that the world's largest oil consumer may face a recession.
- South Korea's S-Oil plans to shut its No. 3 crude distillation unit (CDU), condensate fractionation unit (CFU) and hydrocracker for maintenance in May, a company spokesperson said on Wednesday.
- Kuwait's National Petroleum Company exported its first shipment of modified diesel fuel to Europe through the Mina al-ahmadi refinery, the oil ministry said on Wednesday.
- Exxon Mobil Corp posted a $56 billion net profit for 2022, the company said, taking home about $6.3 million per hour last year, and setting not only a company record but a historic high for the Western oil industry.
WINDOW TRADES
- 180-cst HSFO: One trade
- 380-cst HSFO: No trade
- 0.5% VLSFO: Three trades
ASSESSMENTS
FUEL OIL | ||||
CASH ($/T) | ASIA CLOSE | CHANGE | PREV CLOSE | RIC |
Cargo - 0.5% VLSFO | 660.56 | 30.38 | 630.18 | (MFO05-SIN) |
Diff - 0.5% VLSFO | 28.40 | 5.65 | 22.75 | (MFO05-SIN-DIF) |
Cargo - 180cst | 397.49 | 4.37 | 393.12 | (FO180-SIN) |
Diff - 180cst | -2.56 | -1.39 | -1.17 | (FO180-SIN-DIF) |
Cargo - 380cst | 388.95 | 8.60 | 380.35 | (FO380-SIN) |
Diff - 380cst | 1.02 | 0.27 | 0.75 | (FO380-SIN-DIF) |
Bunker (Ex-wharf) Premium - 380cst | 9.50 | -1.00 | 10.50 | |
Bunker (Ex-wharf) Premium - 0.5% VLSFO | 29.00 | 2.50 | 26.50 |
For a list of derivatives prices, including margins, please double click the RICs below. | |
Brent M1 | (BRENTSGMc1) |
180cst M1 | (FO180SGSWMc1) |
180cst M1/M2 | (FO180SGSDMc1) |
180cst M2 | (FO180SGSWMc2) |
Visco M1 | (FOVISSGDFMc1) |
Visco M2 | (FOVISSGDFMc2) |
380cst M1 | (FO380SGSWMc1) |
380cst M1/M2 | (FO380SGSDMc1) |
380cst M2 | (FO380SGSWMc2) |
Cracks 180-Dubai M1 | (FO180SGCKMc1) |
Cracks 180-Dubai M2 | (FO180SGCKMc2) |
East-West M1 | (FOSGEWMc1) |
East-West M2 | (FOSGEWMc2) |
Barges M1 | (HFOFARAAMc1) |
Barges M1/M2 | (HFOFARAASMc1) |
Barges M2 | (HFOFARAAMc2) |
Crack Barges-Brent M1 | (HFOFARAACMc1) |
Crack Barges-Brent M2 | (HFOFARAACMc2) |