Asia Fuel Oil-Benchmarks steady, high stockpiles at key hubs cap recovery

Fuel oil benchmarks in Asia ended the week on a steady note as high onshore stockpiles across key trading hubs capped recovery.

Inventories for fuel oil extended gains across all key hubs including Singapore, Fujairah and Rotterdam, based on data this week. The Asia region has been awash with incoming supplies this month, based on ship-tracking data and trade sources.

Demand for bunker fuel has also been lukewarm at top bunker hub Singapore in March, extending a slowdown that emerged since February, said sources.

Singapore’s cash differentials for very low sulphur fuel oil MFO05-SIN-DIF closed Friday at premiums between $1 to $2 a metric ton, while refining cracks LFO05SGDUBCMc1 were at premiums between $12 to $13 a barrel.

Spot 380-cst high sulphur fuel oil differentials FO380-SIN-DIF held steadily in discounts to Singapore quotes, while cracks FO380DUBCKMc1 were at discounts of about $10 to $11 a barrel.

Meanwhile, Thailand’s PTT offered VLSFO for loading from Map Ta Phut port in April. The tender closes on March 25 and is valid until March 26.

INVENTORY DATA

– ARA inventories STK-FO-ARA gained 0.4% week-on-week to 1.51 million tons in the week to March 21, data from Dutch consultancy Insights Global showed.

OTHER NEWS

– Oil prices slipped on Friday on the possibility of a nearing Gaza ceasefire that could ease geopolitical concerns in the Middle East, while a stronger dollar and faltering U.S. gasoline demand also weighed on prices.

– Russia said that the United States was unlikely to agree to a Ukrainian proposal to lower the price cap on Russian oil to $30 a barrel because it would roil global energy markets and damage the U.S. economy.

– Crude oil physical markets in Europe and Africa have weakened in response to peak refinery maintenance and extra supply from the United States and Saudi Arabia, dampening the impact of Red Sea shipping delays, according to traders, flows data and analysts.

– Somali pirates’ return are adding to the crisis for global shipping companies, as more than 20 attempted hijackings since November have driven up prices for armed security guards and insurance coverage while raising the spectre of possible ransom payments, according to industry representatives.

WINDOW TRADES

– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Arun Koyyur)