Asia Fuel Oil-VLSFO cracks dip, cash discounts widen
The front-month VLSFO crack dipped to $8.33 per barrel against Dubai crude during Asian trade, down from $8.39 per barrel on Friday. The VLSFO cracks, however, have gained 11 per cent in the last two weeks, Refinitiv Eikon data showed
SINGAPORE: Asia’s front-month crack for 0.5 per cent very low-sulphur fuel oil (VLSFO) slipped on Monday, partly hurt by firmer crude prices, but traders were hopeful the market would likely hold its ground in the near term as a supply overhang in the region is expected to ease.
The front-month VLSFO crack dipped to $8.33 per barrel against Dubai crude during Asian trade, down from $8.39 per barrel on Friday. The VLSFO cracks, however, have gained 11 per cent in the last two weeks, Refinitiv Eikon data showed.
Cash discount for Asia’s 0.5 per cent VLSFO was at $1.75 a tonne to Singapore quotes, compared with a discount of $1.72 per tonne on Friday. The 380-cst high-sulphur fuel oil (HSFO) barge crack for September was at a discount of $6.47 a barrel to Brent, compared with minus $6.60 a barrel on Friday, Refinitiv data showed.
The court-appointed manager of Singapore Ocean Tankers (Pte.) Ltd is seeking to reclaim about $19 million from the Lim family directors of the firm, who allegedly transferred the funds from the shipping company to their accounts in April, court documents show.
The interim judicial managers from EY said the Lim family “breached their fiduciary duties” by transferring the funds when Ocean Tankers was insolvent. Ocean Tankers, owned by Oon Kuin Lim, founder of embattled oil firm Hin Leong Trading Pte Ltd, and his daughter, Lim Huey Ching, was placed under interim judicial management on May 12.
One high-sulphur fuel oil (HSFO) cargo trade was reported in the window with Gunvor buying a 20,000-tonne cargo of 380-cst HSFO from Glencore at $260 per tonne. No 0.5 per cent very low-sulphur fuel oil (VLSFO) cargo trades were reported.
US crude oil shipments to China will rise sharply in the coming weeks, US traders and shipbrokers and Chinese importers said, as the world’s top economies gear-up to review a January deal after a prolonged trade war.
Oil prices steadied on Monday as news that China planned to ship large volumes of US crude in August and September countered rising tensions between the two countries and a delay in the review of their trade pact over the weekend.