Asia’s 180-cst high sulphur fuel oil (HSFO) market retreated on Wednesday as a lower offer emerged.

The cash differential for 180-cst HSFO dropped to a premium of $11.95 a metric ton, down by more than 25% day-on-day.

The sharp decline followed a recent collapse in the 380-cst HSFO market, which has since steadied.

The 380-cst HSFO cash differential FO380-SIN-DIF was pegged stable at a premium of $9 a ton, while September crack FO380DUBCKMc1 closed at a discount of $6.41 a barrel.

Meanwhile, very low sulphur fuel oil (VLSFO) continued to soften, with the 0.5% VLSFO September/October timespread pegged lower at $9.50 a ton at 0830 GMT, based on Refinitiv data.

September 0.5% VLSFO crack LFO05SGDUBCMc1 fell to a premium of $10.67 a barrel, while spot cash differential MFO05-SIN-DIF was pegged lower at a premium of $6.25 a ton.


Fuel oil inventories at Fujairah FUJHD04 edged 5% higher at 9.80 million barrels (1.54 million tons) in the week to Aug. 28, hitting eight-week highs, showed Fujairah Oil Industry Zone data published by S&P Global Commodity Insights.


– Oil rose on Wednesday after industry data showed a large draw in crude inventories in the U.S., and as concerns about a hurricane in the Gulf of Mexico kept investors on edge.
– Japan’s Mitsui & Co, Mitsui Chemicals, IHI Corp and Kansai Electric Power Co will conduct a joint study for establishing a hydrogen and ammonia supply chain in the Osaka coastal industrial zone, the companies said.
– The port of Rotterdam has for the first time refuelled a methanol-powered container ship as the shipping industry turns to the technology to cut its emissions, methanol producer OCI Global said.
– European oil majors Eni and Repsol plan to expand an oil-for-debt deal with Venezuela under U.S. approval, aiming to supply refined products to state firm PDVSA and boost oil deliveries to Europe, three people close to the matter said.


– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade

Source: Reuters reported by Jeslyn Lerh and editing by Sohini Goswami