SINGAPORE, Feb 20 (Reuters) - Singapore's 380-cst high-sulphur fuel oil (HSFO)/Brent crack flipped back into a premium on Thursday amid recent waves of volatile trading.
The crack had flipped from discounts to rare premiums earlier this month, before swinging back into discounts again.
Singapore March 380-cst HSFO/Brent crack FO380BRTCKMc1 closed at a premium of 37 cents a barrel on Thursday, LSEG data showed.
The HSFO market has undergone volatile swings this year due to a mixed bag of supply and demand drivers.
Backwardation continued to rally at prompt months, with March/April spread extending gains to near $19 per metric ton at Thursday's Asia close, based on data from trade sources.
Spot premiums for very low sulphur fuel oil (VLSFO) inched higher on Thursday as firmer-priced trades emerged after a few days of trading lull, though the market remained bearish on slow downstream bunkering demand in Asia.
Meanwhile, cracks for VLSFO LFO05SGBRTCMc1 closed largely stable at premiums of about $11 per barrel.
INVENTORY DATA
- Singapore onshore fuel oil stockpiles STKRS-SIN were at 18.91 million barrels (2.98 million tons) in the week to Feb. 19, down 5.8% from the previous week and logging three-week lows, Enterprise Singapore data showed.
OTHER NEWS
- Oil prices were little changed on Thursday after rising to a near one-week high in the previous session, as an industry report showing a buildup in U.S. crude stockpiles pressured the market. O/R
- Three oil tankers have been damaged by blasts in the last month in separate incidents around the Mediterranean, with the causes unknown, shipping and security sources said on Wednesday.
- The Singapore trading arm of U.S.-based refiner Phillips 66 has recently leased a new floating storage vessel along the Singapore and Malacca Straits for storing fuel oil, market sources told Reuters.
- Singapore is set to import multi-year high diesel volumes for February, according to data from two shiptrackers and trade sources, as sellers shipped cargoes to Asia's key oil storage hub amid tepid demand elsewhere.
WINDOW TRADES O/AS
- 180-cst HSFO: No trade
- 380-cst HSFO: No trade
- 0.5% VLSFO: Two trades
ASSESSMENTS
FUEL OIL | ||||
CASH ($/T) | ASIA CLOSE | CHANGE | PREV CLOSE | RIC |
Cargo - 0.5% VLSFO | 555.38 | -1.08 | 556.46 | MFO05-SIN |
Diff - 0.5% VLSFO | 4.50 | 0.55 | 3.95 | MFO05-SIN-DIF |
Cargo - 180cst | 493.35 | 3.84 | 489.51 | FO180-SIN |
Diff - 180cst | 6.00 | 0.30 | 5.70 | FO180-SIN-DIF |
Cargo - 380cst | 489.92 | 4.57 | 485.35 | FO380-SIN |
Diff - 380cst | 6.00 | 0.70 | 5.30 | FO380-SIN-DIF |
Bunker (Ex-wharf) Premium - 380cst | 9.50 | -0.50 | 10.00 | |
Bunker (Ex-wharf) Premium - 0.5% VLSFO | 7.50 | 0.50 | 7.00 |
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 |
(Reporting by Jeslyn Lerh; Editing by Maju Samuel)
((jeslyn.lerh@thomsonreuters.com))
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