On Thursday, the spot differential for high sulphur fuel oil (HSFO) in Asia decreased, reversing a brief uptick into premium territory. The cash differential for Singapore’s 380-cst HSFO was noted at $2.52 per ton, a decline of 48 cents from the previous trading session. Additionally, the 180-cst HSFO saw a decrease of 41 cents, settling at 34 cents per ton. In contrast, the premium for very low sulphur fuel oil (VLSFO) continued to increase, with a deal being finalized after a three-day lull in activity.
According to data from Enterprise Singapore, fuel oil stocks in Singapore rose by 1,239 million barrels, reaching an 18-week high of 24.126 million barrels for the week ending April 23. This increase in inventory reflects ongoing trends in the market. In broader market news, oil prices started to recover on Thursday after experiencing a nearly 2% drop the day before. Investors appeared to be weighing a possible increase in OPEC+ output against mixed signals regarding tariffs from the White House and ongoing discussions related to the U.S.-Iran nuclear deal.
Sources familiar with OPEC+ negotiations indicated that several members are likely to propose accelerating oil output hikes in June, marking the second consecutive month for such suggestions, amid heightened concerns about compliance with production quotas among member nations. In terms of recent trades, there were no recorded transactions for both 180-cst HSFO and 380-cst HSFO, while one trade was successfully made in the 0.5% VLSFO category.