Asia Fuel Oil VLSFO cracks dip, HSFO cash discounts widen

  • 12/7/2021
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Asia"s front-month crack for 0.5% very low-sulphur fuel oil (VLSFO) slipped on Tuesday, weighed by weaker buying interests for physical cargoes and expectations of increasing supplies. The front-month VLSFO crack fell to $13.47 per barrel against Dubai crude during Asian trading hours, compared with $13.73 per barrel a day earlier. Cash differentials for Asia"s 0.5% VLSFO were at a premium of $17.90 a tonne to Singapore quotes on Tuesday, down from $21.70 per tonne on Monday. Meanwhile, Asia"s cash discounts for 380-cst high sulphur fuel oil (HSFO) widened to $1.33 per tonne to Singapore quotes on Tuesday, while the cash discounts for 180-cst HSFO were at $1.58 per tonne. FOREIGN VESSELS - Russia is considering banning foreign vessels from shipping Russian energy cargoes via the Northern Sea Route, as well as from icebreaking and coastal navigation, the Kommersant newspaper reported on Tuesday, citing a draft government resolution. read more - The step, proposed by the Industry and Trade Ministry, would restrict vessels built outside Russia on the Northern Sea Route that Moscow wants to become a major shipping lane as the Arctic warms at a faster rate than the rest of the world. DRY BULK - The Baltic Exchange"s dry bulk sea freight index rose to an over one-month high on Monday, buoyed by strengthened rates across all its vessel segments. read more - The overall index (.BADI), which factors in rates for capesize, panamax and supramax vessels, added 64 points, or 2%, to 3,235, a peak since Nov. 1. WINDOW TRADES - Gunvor bought a 40,000-tonne VLSFO cargo from Vitol at a premium of $12 per tonne to the balance of December Singapore quotes. - No HSFO deals were reported on Tuesday OTHER NEWS - Oil prices extended gains on Tuesday from a near 5% rebound the day before as concerns about the impact of the Omicron coronavirus variant on global fuel demand eased and Iran nuclear talks stalled, delaying the return of Iranian crude. - China"s imports of crude oil rebounded in November from the previous month"s lows, but were still about 8% below the levels of a year earlier, customs data showed on Tuesday, as fresh quotas let refiners bring in imports held in anchored vessels. read more ASSESSMENTS FUEL OIL CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Cargo - 180cst 410.62 15.73 3.98 394.89 Diff - 180cst -1.58 -0.13 8.97 -1.45 Cargo - 380cst 402.46 16.51 4.28 385.95 Diff - 380cst -1.33 -0.10 8.13 -1.23 Bunker (Ex-wharf)- 380cst 405.00 16.00 4.11 389.00 Bunker (Ex-wharf) Premium 2.54 -0.51 -16.72 3.05 For a list of derivatives prices, including margins, please double click the RICs below. Brent M1 180cst M1 180cst M1/M2 180cst M2 Visco M1 Visco M2 380cst M1 380cst M1/M2 380cst M2 Cracks 180-Dubai M1 Cracks 180-Dubai M2 East-West M1 East-West M2 Barges M1 Barges M1/M2 Barges M2 Crack Barges-Brent M1 Crack Barges-Brent M2 Reporting by Koustav Samanta; Editing by Amy Caren Daniel Our Standards: The Thomson Reuters Trust Principles.

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