Asia Fuel Oil VLSFO crack rises to 10-month high

  • 12/24/2021
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SINGAPORE, Dec 24 (Reuters) - Asia"s front-month crack for 0.5% very low-sulphur fuel oil (VLSFO) surged to a 10-month high on Friday, posting a third consecutive weekly gain, supported by robust regional demand amid tight supplies. The front-month VLSFO crack rose to $15.68 per barrel against Dubai crude during Asian trade, a level not seen since Feb. 25. The crack was at $15.64 per barrel a day earlier, and has gained 2.6% this week. The current market tightness would likely incentivise higher production and inflows from other regions, weighing on margins in coming weeks, market watchers said. Cash differentials for Asia"s 0.5% VLSFO were at a premium of $16.46 a tonne to Singapore quotes on Friday, compared with $18.91 per tonne on Thursday. Meanwhile, Asia"s cash premiums for 380-cst high sulphur fuel oil (HSFO) rose to $1.90 per tonne to Singapore quotes, up from $1.23 per tonne in the previous session. The 380-cst HSFO barge crack for January slipped to trade at a discount of $11.34 a barrel to Brent, Refinitiv data showed. ARA INVENTORIES - Fuel oil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rose 5% to 1.1 million tonnes in the week to Dec. 23, data from Dutch consultancy Insights Global showed. - The data showed ARA gasoil inventories rose 1.9% to 1.7 million tonnes WINDOW TRADES - Three HSFO trades, one VLSFO deal OTHER NEWS - Oil prices fell on Friday in thin, holiday trade after a three-day rally, with investors trying to gauge the Omicron coronavirus variant"s impact on demand. - India"s crude oil imports in November rose to their highest level in 10 months as refiners stocked up to boost runs in anticipation of strong demand in the world"s third-largest oil consumer and importer. ASSESSMENTS FUEL OIL CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Cargo - 180cst 428.52 2.52 0.59 426.00 Diff - 180cst -2.23 -0.98 78.40 -1.25 Cargo - 380cst 424.15 4.67 1.11 419.48 Diff - 380cst 1.90 0.67 54.47 1.23 Bunker (Ex-wharf)- 380cst 428.00 5.00 1.18 423.00 Bunker (Ex-wharf) Premium 3.85 0.33 9.37 3.52 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 Subhranshu Sahu

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