SINGAPORE, Dec 22 (Reuters) - Asia’s spot differential for 380-cst high sulphur fuel oil (HSFO) rose slightly on Monday after some trades emerged, though the market continued to hold in a contango for prompt months.
Two deals for 380-cst HSFO came up following a trading lull on the window for two weeks, based on data from market sources. These were done at discounts to cargo quotes, though the benchmark differential firmed slightly.
However, HSFO’s market structure remained steadily in a contango, indicative of ample prompt supply.
Meanwhile, very low-sulphur fuel oil (VLSFO) held range-bound from the previous session, even as its contango narrowed.
Cracks for VLSFO were stable at premiums near $4.25 a barrel in thin trading, while HSFO cracks (FO380BRTCKMc1) dipped to discounts of about $7 a barrel, LSEG data showed on Monday.
<h3>CHINA DATA</h3>
China’s imports of fuel oil rose 15% from a month earlier to 2.15 million metric tons in November, customs data showed.
Meanwhile, China’s exports of fuel oil, mostly for low-sulphur marine fuel bunkering, climbed 29% month-on-month to 1.58 million metric tons in November.
<h3>OTHER NEWS</h3>
<ul>
<li>Oil prices rose on Monday after officials said the U.S. had intercepted an oil tanker in international waters off the coast of Venezuela, raising fresh supply uncertainty. (O/R)</li>
<li>Chinese oil major CNOOC Ltd said on Monday that an offshore oil project in the South China Sea had commenced production.</li>
<li>Indonesia announced a round of oil and gas block tenders on Monday, offering eight new blocks to contractors, an energy ministry document showed, amid efforts to increase energy reserves.</li>
<li>A Ukrainian drone attack damaged two vessels, two piers and sparked a fire in a village on the Black Sea coast in Russia’s Krasnodar region, regional authorities said on Monday.</li>
</ul>
<h3>WINDOW TRADES (O/AS)</h3>
<ul>
<li>180-cst HSFO: No trade</li>
<li>380-cst HSFO: Two trades</li>
<li>0.5% VLSFO: No trade</li>
</ul>
<h3>ASSESSMENTS</h3>
<h3>FUEL OIL</h3>
<h3>CASH ($/T) ASIA CHANGE PREV RIC</h3>
<h3>CLOSE CLOSE</h3>
Cargo - 0.5% VLSFO 410.73 7.32 403.41 (MFO05-SIN)
Diff - 0.5% VLSFO -0.30 0.15 -0.45 

<blockquote></blockquote>
Cargo - 180cst 341.80 4.83 336.97 (FO180-SIN)
Diff - 180cst -5.00 -0.15 -4.85 

<blockquote></blockquote>
Cargo - 380cst 337.57 5.22 332.35 (FO380-SIN)
Diff - 380cst -2.80 0.15 -2.95 

<blockquote></blockquote>
Bunker (Ex-wharf) Premium 0.50 0.00 0.50
<ul>
<li>380cst</li>
</ul>
Bunker (Ex-wharf) Premium 2.50 0.00 2.50
<ul>
<li>0.5% VLSFO</li>
</ul>
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)

00883

600938

Asia's spot differential for 380-cst HSFO rose slightly amid contango, with two trades emerging after a lull. VLSFO remained range-bound, while its contango narrowed. China's fuel oil imports rose 15% in November, and exports climbed 29%. Oil prices increased due to U.S. interception of a tanker near Venezuela. CNOOC started production in the South China Sea, and Indonesia announced new oil and gas block tenders. A Ukrainian drone attack damaged vessels in Russia's Krasnodar region.

Asia Fuel Oil-HSFO differential inches up though market retains contango