A recent news article published in the Reuters states that Asia Fuel Oil VLSFO crack posts biggest weekly gain in over 1-1/2 years.
Asia’s front-month crack
Asia’s front-month crack for 0.5% very low-sulphur fuel oil (VLSFO) dipped on Friday, but posted its steepest weekly jump in more than 1-1/2 years amid tight global supplies.
The front-month VLSFO crack was at $27.50 per barrel against Dubai crude during Asian trading hours, compared with Thursday’s $29.39 per barrel, which was the highest since January 2020.
Marine fuel grade has surged
The crack for the marine fuel grade has surged 33% this week in its biggest weekly gain since June 2020, Refinitiv Eikon data showed.
Cash premiums for Asia’s 0.5% VLSFO slipped to $16.88 a tonne to Singapore quotes on Friday, compared with $17.12 per tonne on Thursday.
The prompt-month VLSFO time spread narrowed its backwardated structure marginally on Friday to trade at $30.75 a tonne, compared with $31.25 a tonne in the previous session.
Meanwhile, Asia’s cash premiums for 380-cst high sulphur fuel oil (HSFO) were at $3.34 per tonne to Singapore quotes on Friday, the highest since October last year. They were at a premium of $3.25 per tonne on Thursday.
The 380-cst HSFO barge crack for April traded at a discount of $16.02 a barrel to Brent on Friday, compared with minus $16.50 a barrel on Thursday.
Ara inventories
– Fuel oil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub climbed 6.9% to 1.1 million tonnes in the week to March 3, data from Dutch consultancy Insights Global showed.
– The data showed ARA gasoil inventories rose 4.9% to 1.7 million tonnes.
Window trades
– One VLSFO trade was reported, no high-sulphur fuel oil (HSFO) deals
Other news
– Oil rose above $111 a barrel on Friday in a volatile session as fears over disruption to Russian oil exports in the face of Western sanctions offset the prospect of more Iranian supplies in the event of a nuclear deal with Tehran.
– Indian refiner Nayara Energy, part-owned by Russian oil giant Rosneft, could find it harder to raise funds for expansion as a result of Western sanctions in response to Russia’s invasion of Ukraine, sources with direct knowledge of the matter said.
Did you subscribe to our daily Newsletter?
It’s Free! Click here to Subscribe
Source: Reuters
