Asia Fuel Oil-VLSFO extends slide as bearish fundamentals weigh
SINGAPORE, Aug 6 (Reuters) - Asia's very low sulphur fuel oil (VLSFO) market softened further on Wednesday, with supply pressure and tepid demand underpinning the market.
The product's cash differential inched nearer towards parity from cargo quotes, on the verge of discounts, based on market indications.
Meanwhile, spot high sulphur fuel oil (HSFO) continued to trade steadily in discounts to cargo quotes, though market structure recovered slightly at the prompt months.
In tenders, India's HPCL offered three cargoes of HSFO for loading between late August and early September, based on industry sources. The tender closes on Thursday.
Refining cracks were rangebound from the previous session. Singapore 380-cst HSFO crack closed at a discount of about $3.50 a barrel, while VLSFO crack was steady at a premium of $9.35 a barrel, showed Dubai-basis values from LSEG on Wednesday.
INVENTORY DATA
- Fujairah heavy fuel inventories FUJHD04 rose 21.7% to 9.66 million barrels (1.52 million tons) in the week to Aug. 4, FOIZ data published by S&P Global Commodity Insights showed.
OTHER NEWS
- Oil prices climbed on Wednesday, in response to concerns over potential supply disruptions after U.S. President Donald Trump threatened India with higher tariffs over its Russian crude purchases. O/R
- Indian Oil Corp has bought one million barrels of Nigeria's Agbami crude oil for September delivery, trade sources said on Wednesday.
- Nigeria's Dangote oil refinery is planning a 15-day maintenance shutdown of its gasoline-making RFCC unit, tentatively starting on August 10, according to a note from industry monitor IIR seen by Reuters.
- Saudi Arabian oil company Aramco reported a 22% drop in second-quarter profit on Tuesday, mainly on lower revenue, while it racked up more debt.
WINDOW TRADES O/AS
- 180-cst HSFO: Two trades
- 380-cst HSFO: One trade
- 0.5% VLSFO: No trade
ASSESSMENTS
FUEL OIL | ||||
CASH ($/T) | ASIA CLOSE | CHANGE | PREV CLOSE | RIC |
Cargo - 0.5% VLSFO | 495.11 | -4.09 | 499.20 | MFO05-SIN |
Diff - 0.5% VLSFO | 0.30 | -0.80 | 1.10 | MFO05-SIN-DIF |
Cargo - 180cst | 417.80 | 0.84 | 416.96 | FO180-SIN |
Diff - 180cst | -4.45 | 0.05 | -4.50 | FO180-SIN-DIF |
Cargo - 380cst | 406.83 | -1.11 | 407.94 | FO380-SIN |
Diff - 380cst | -5.05 | -1.35 | -3.70 | FO380-SIN-DIF |
Bunker (Ex-wharf) Premium - 380cst | 1.00 | 0.00 | 1.00 | |
Bunker (Ex-wharf) Premium - 0.5% VLSFO | 5.00 | 0.00 | 5.00 |
For a list of derivatives prices, please refer to ENSWAP/INFO or the RICs below: | |
180cst M1 | FO180SGSWMc1 |
180cst M1/M2 | FO180SGSDMc1 |
380cst M1 | FO380SGSWMc1 |
380cst M1/M2 | FO380SGSDMc1 |
0.5% VLSFO M1 | LFO05FSGMc1 |
0.5% VLSFO M1/M2 | LFO05FSGSMc1 |
Cracks 180cst-Brent M1 | FO180BRTCKMc1 |
Cracks 180cst-Dubai M1 | FO180SGCKMc1 |
Cracks 380cst-Brent M1 | FO380BRTCKMc1 |
Cracks 380cst-Dubai M1 | FO380DUBCKMc1 |
Cracks 0.5% VLSFO-Brent M1 | LFO05SGBRTCMc1 |
Cracks 0.5% VLSFO-Dubai M1 | LFO05SGDUBCMc1 |
Visco 180cst/380cst M1 | FOVISSGDFMc1 |
Hi-5 0.5% VLSFO/380cst M1 | FO05-380SGMc1 |
GoFo 10PPM/0.5% VLSFO M1 | GO10FO05FSGMc1 |
East-West M1 | FOSGEWMc1 |
Barges M1 | HFOFARAAMc1 |
Barges M1/M2 | HFOFARAASMc1 |
Crack Barges-Brent M1 | HFOFARAACMc1 |
Related Articles
Investing in Clean Energy
TradingKey - Not so long ago, clean energy was relegated to a niche, a corner for subsidies, early markets, and greens. Now it's at the center of global economic thought. Governments, business, and consumers are driving a structural transformation from fossil fuels to renewables. The roofs are toppe
Investing in Luxury & Experiential Consumption
Niche assets like data centers, logistics, healthcare, and cold storage thrive on structural drivers, not traditional property cycles Specialized real estate benefits from secular trends like digitalization, demographics, and supply chain innovation, making demand resilient and less cycle-sensitive
Oracle’s FY2026 Q1 Preview: Will OpenAI Contract Spark a Broadcom-Like Stock Surge?
TradingKey - As analysts raise targets and expectations, could Oracle’s stock replicate the post-earnings rally seen at Broadcom following its OpenAI-related contract announcement?
U.S. August CPI Preview: Persistent Rise in Inflation, What Impact on Rate Cuts? And on US Stocks?
TradingKey - On 11 September 2025, the U.S. will publish August CPI data. Consensus forecasts indicate a 0.3% month-over-month increase for both headline CPI and core CPI. As a result, headline CPI year-over-year may climb to 2.9%, up from 2.7%
Fed to Cut Rates: All Asset Prices Up!
TradingKey - The Federal Reserve is almost certain to restart its interest rate cut cycle on 17 September this year. After in-depth research, we have concluded that cryptocurrencies, the broader U.S. stock market, and short-term U.S. Treasury bonds will all go up.
