SINGAPORE, Feb 9 (Reuters) - A rally in Asia’s high sulphur fuel oil (HSFO) market showed further signs of easing on Monday, with market structure softening for prompt months, while overall trading activity in the spot market also slowed compared to the previous sessions.
Spot premiums for 380-cst HSFO inched slightly higher, though the February-March spread weakened to below $18 a metric ton, versus levels closer to $20 last week.
The strength has stalled due to mixed sentiment around supplies, with some market sources perceiving tightness in the HSFO market this month, while others said availability was adequate.
Meanwhile, the market for very low sulphur fuel oil (VLSFO) was little changed, though spot differentials were pegged at narrower discounts on Monday.
Cracks for both grades held broadly stable. The 380-cst HSFO crack (FO380BRTCKMc1) closed at a discount near $4.70 a barrel, while VLSFO’s crack (LFO05SGBRTCMc1) was at a premium near $4.60 a barrel, LSEG data showed on Monday.
REFINERY UPDATES - Indian refiners are avoiding Russian oil purchases for delivery in April and are expected to stay away from such trades for longer, refining and trade sources said, a move that could help New Delhi seal a trade pact with Washington.
<h3>OTHER NEWS</h3>
<ul>
<li>Oil prices fell more than 1% on Monday as fears of a Middle East conflict eased after the U.S. and Iran pledged to continue indirect talks about Tehran’s nuclear programme, calming worries about potential supply disruptions. (O/R) - India’s state refiners Indian Oil and Hindustan Petroleum have together bought 2 million barrels of Merey crude from Venezuela for delivery in the second half of April, two trade sources aware of the deal said. - Kazakhstan’s planned oil exports could fall by as much as 35% this month via its main route through Russia, four trading sources have told Reuters, as the giant Tengiz oilfield slowly recovers from fires at power facilities in January. - Atlantic Sea LNG Trade, a joint venture between Greece’s gas supplier DEPA and construction group Aktor, is in talks to secure up to 15 billion cubic meters of U.S. liquefied natural gas annually for 20 years to supply southern Europe, its CEO told Reuters.</li>
</ul>
<h3>WINDOW TRADES (O/AS)</h3>
<ul>
<li>180-cst HSFO: No trade</li>
<li>380-cst HSFO: No trade</li>
<li>0.5% VLSFO: No trade</li>
</ul>
<h3>ASSESSMENTS</h3>
<h3>FUEL OIL</h3>
<h3>CASH ($/T) ASIA CHANGE PREV RIC</h3>
<h3>CLOSE CLOSE</h3>
Cargo - 0.5% VLSFO 453.06 -4.11 457.17 (MFO05-SIN)
Diff - 0.5% VLSFO -0.95 0.80 -1.75 

DIF&gt;
Cargo - 180cst 416.62 -7.08 423.71 (FO180-SIN)
Diff - 180cst 9.50 0.65 8.85 

DIF&gt;
Cargo - 380cst 416.35 -6.54 422.89 (FO380-SIN)
Diff - 380cst 13.25 1.20 12.05 

DIF&gt;
Bunker (Ex-wharf) 2.00 0.00 2.00
Premium - 380cst
Bunker (Ex-wharf) 4.00 0.00 4.00
Premium - 0.5% VLSFO
For a list of derivatives prices, please refer
to ENSWAP/INFO or the RICs below:
180cst M1 (FO180SGSWMc1)
180cst M1/M2 (FO180SGSDMc1)
380cst M1 (FO380SGSWMc1)
380cst M1/M2 (FO380SGSDMc1)
0.5% VLSFO M1 (LFO05FSGMc1)
0.5% VLSFO M1/M2 (LFO05FSGSMc1)
Cracks 180cst-Brent M1 (FO180BRTCKMc1)
Cracks 180cst-Dubai M1 (FO180SGCKMc1)
Cracks 380cst-Brent M1 (FO380BRTCKMc1)
Cracks 380cst-Dubai M1 (FO380DUBCKMc1)
Cracks 0.5% VLSFO-Brent M1 (LFO05SGBRTCMc1)
Cracks 0.5% VLSFO-Dubai M1 (LFO05SGDUBCMc1)
Visco 180cst/380cst M1 (FOVISSGDFMc1)
Hi-5 0.5% VLSFO/380cst M1 (FO05-380SGMc1)
GoFo 10PPM/0.5% VLSFO M1 (GO10FO05FSGMc1)
East-West M1 (FOSGEWMc1)
Barges M1 (HFOFARAAMc1)
Barges M1/M2 (HFOFARAASMc1)
Crack Barges-Brent M1 (HFOFARAACMc1)

A rally in Asia's high sulphur fuel oil (HSFO) market is easing, with spot premiums slightly higher but the February-March spread weakening to below $18 per metric ton. Mixed sentiment around supplies is affecting the market, while trading activity has slowed. Indian refiners are avoiding Russian oil purchases, and oil prices fell over 1% amid easing Middle East conflict fears. Additionally, Kazakhstan's oil exports may drop by 35% this month due to recovery issues at the Tengiz oilfield.

Reuters

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Asia Fuel Oil-HSFO rally cools while broader trading activity slows