Refining cracks for very-low sulphur fuel oil (VLSFO) in Asia posted weekly gains as of Friday, though cash differentials have softened after a recent rally, reports XM.
The November 0.5% VLSFO crack LFO05SGDUBCMc1 rose day-on-day to a premium of $9.30 a barrel, climbing by about 6% week-on-week.
Cash premiums MFO05-SIN-DIF fell for a second straight day to a premium of $13.88 a metric ton, after hitting a four-month high earlier this week.
Bearish gasoline cracks are expected to cap an uptrend in VLSFO prices, as more residual barrels find their way into the bunker blending pool.
Meanwhile, the 380-cst HSFO market steadied on Friday, with cash differentials FO380-SIN-DIF climbing to a discount of $1.50 a ton, while the November crack FO380DUBCKMc1 closed higher at a discount of $13.73 a barrel.
ARA INVENTORIES
Inventories at ARA STK-FO-ARA dipped 0.6% to 1.04 million tons in the week to Oct. 5, holding at nine-month lows, latest data from Dutch consultancy Insights Global showed.
OTHER NEWS
- Oil prices were stable on Friday but on course for a weekly loss, as demand fears driven by macroeconomic headwinds were compounded by another partial lifting of Russia’s fuel export ban.
- Russia’s government said on Friday it had lifted a ban on pipeline diesel exports via ports, removing the bulk of restrictions installed on Sept. 21.
- U.S. gasoline prices are heading south and may hit $3 a gallon in many places in coming weeks with crude oil futures down $10 a barrel over economic fears and eroding demand.
- Efforts to finalise a pact that ended strikes at Chevron’s two Australian liquefied natural gas plants stumbled on Thursday, when workers voted to restart stoppages after unions accused the U.S. energy major of reneging on commitments.
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Source: XM
