SINGAPORE- Asia's cash differential for 380-cst high-sulphur fuel oil (HSFO) widened its discount on Thursday, weighed down by ample supplies.
The cash discount for 380-cst HSFO was at $1.06 per tonne to Singapore quotes, compared with a discount of $1 per tonne a day earlier.
The 380-cst HSFO barge crack for January traded at a discount of $12.63 a barrel to Brent on Thursday, compared with minus $12.40 a barrel on Wednesday. The crack has shed about 8.3% in the last week, Refinitiv data showed.
Meanwhile, the front-month VLSFO crack rose 55 cents to $13.60 per barrel against Dubai crude during Asian trading hours.
Cash differential for Asia's 0.5% VLSFO was at a premium of $15.98 a tonne to Singapore quotes on Thursday, against $16.24 per tonne in the previous session.
- Singapore's onshore fuel oil stocks rose 4.1% to a two-week high of 20.6 million barrels, or 3.1 million tonnes, in the week to Dec. 8, according to the Enterprise Singapore data.
- Weekly fuel oil inventories have averaged 22.6 million barrels so far this year, having averaged 23.8 million barrels a week last year, Reuters calculations showed. Onshore fuel oil inventories were 7.8% lower, compared with year-ago levels.
- No HSFO trades, no VLSFO deals
- Oil and gas will remain the dominant fuel source for decades to come, the industry's top executives declared on Wednesday, making their case not to be under valued as governments seek to reduce fossil fuels to address climate worries.
- Early winter storms in southern Russia are hampering oil operations in Black Sea ports, traders said on Wednesday, delaying cargoes and increasing costs.
Bad weather has been hammering the Black Sea oil export centres since November, with Novorossiisk oil terminal, which loads Urals crude, and Yuzhnaya Ozereyevka, which loads CPC Blend, most affected, said traders.
(Reporting by Koustav Samanta; Editing by Krishna Chandra Eluri) ((email@example.com (+65 6870 3503)(Reuters Messaging: firstname.lastname@example.org))