Asia’s cash premium for 0.5% very low sulphur fuel oil (VLSFO) eased for a sixth consecutive session on Tuesday, after a short-lived rally towards eight-month highs.

The premium fell to $15 a metric ton as the product traded lower, though refining margin closed slightly higher at a premium of $10.07 a barrel.

High sulphur fuel oil (HSFO) also remained under pressure, with cash premiums retreating amid a weaker backwardation.

Meanwhile, refining margin for 380-cst HSFO closed at a discount of $16.47 a barrel, rebounding after hitting an eight-month low on Monday.

In tenders, Pakistan’s PARCO offered 50,000 tons of HSFO for November loading.

Global energy trader Vitol will be delivering specialised bunker barges at Singapore in early 2024, and will be able to offer a range of biofuel blends through its subsidiaries V-Bunkers and Vitol Bunkers, the company said.

The first IMO Type 2 barge ordered by V-Bunkers will be delivered in January, followed by several more throughout 2024, said Vitol.

From early 2024, Vitol will be able to offer a range of biofuel blends, including B24, B30 and up to B100, on customer request.
Biofuel bunkering has been gaining traction and market interest at the world’s largest bunker hub Singapore, with the maritime industry seeking ways to decarbonise and move away from traditional dirty bunker fuels.

– Oil prices were broadly stable on Tuesday following the previous session’s dip after a flurry of economic data from Germany, the wider euro zone and Britain sketched a bearish picture which could weigh on oil demand.

– World fossil fuel demand is set to peak by 2030 as more electric cars hit the road and China’s economy grows more slowly and shifts towards cleaner energy, said the International Energy Agency.

– Chinese national offshore oil and gas major CNOOC Ltd on Tuesday posted an 8.13% fall in third-quarter profit on lower realised oil prices despite higher output.

– Chevron has agreed to buy Hess for $53 billion in stock to gain a bigger U.S. oil footprint and a stake in rival Exxon Mobil’s massive Guyana discoveries, the latest in a series of blockbuster U.S. oil combinations.

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

Source: Reuters reporting by Jeslyn Lerh and edited by Krishna Chandra Eluri