The cash differentials for high sulphur fuel oil (HSFO) in Asia saw a decline as there were no transactions at the Singapore trading window for five consecutive sessions. As of Friday, the cash premium for 380-cst HSFO was recorded at $14.55 per metric ton, while the cash differential for very low sulphur fuel oil (VLSFO) slipped to a discount of $1.17 per ton.
Trading was cut short on Friday due to a public holiday in Singapore on the following Monday. In related news, China has announced export quotas totaling 12.8 million metric tons of gasoline, diesel, and aviation fuel in its second batch of allowances for the year.
This amount represents a decrease of 1.2 million tons compared to the previous year. The country implements a quota system to regulate its fuel exports, managing both supply levels domestically and international trade.
Additionally, fuel oil stocks at the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub have decreased to 1.088 million tons during the week concluding March 27. This marks a reduction from the prior week’s figure of 1.128 million tons, according to data from Dutch consultancy Insights Global.
In other market news, oil prices faced a dip on Friday due to concerns regarding demand influenced by tariffs. However, the outlook remained optimistic as prices looked set to achieve their third consecutive weekly gain amid tightening global supply, particularly after increased restrictions on Venezuelan and Iranian oil trade by the U.S.
Furthermore, traders noted that Saudi Arabia, the leading oil exporter, might reduce its crude prices for Asian buyers in May to their lowest point in three months, reflecting significant declines in benchmark prices recently. There were no trades reported in the window for 180-cst HSFO, 380-cst HSFO, or 0.5% VLSFO.