SINGAPORE, March 8 (Reuters) – Asia’s cash premiums for 0.5% very low-sulphur fuel oil (VLSFO) rose for a second consecutive session on Tuesday, while the prompt-month spread for the marine fuel grade remained in steep backwardation.Cash differentials for Asia’s 0.5% VLSFO , which have surged about 44% in the last month, were at a premium of $19.80 a tonne to Singapore quotes, compared with $19.67 per tonne a day earlier.The March/April VLSFO time spread traded at $32 a tonne on Tuesday, compared with $33.75 a tonne on Monday.Register now for FREE unlimited access to Reuters.comThe front-month VLSFO crack rose to $29.83 per barrel against Dubai crude during Asian trading hours, up from $29.61 per barrel in the previous session.Meanwhile, the 380-cst HSFO barge crack for April traded at a discount of $16.79 barrel to Brent on Tuesday, while cash premiums for 380-cst high sulphur fuel oil (HSFO) rose to a more than four-month high of $5.55 per tonne to Singapore quotes.Backed by firmer deals in the physical market, the cash differentials for 180-cst HSFO surged to a premium of $8.59 a tonne to Singapore quotes, a level not seen since October last year. They were at a premium of $6.39 per tonne a day earlier.ASIA REFINERS TO CRANK UP RUNS- Some Asian refineries plan to increase output in May to cash in on high prices for gasoil exports to Europe, even as the steepest crude prices in 14 years threaten profit margins, numerous trade sources said. read more – European diesel supplies have shrunk following the disruption of western sanctions imposed on Russia in response to its invasion of Ukraine, which it describes as a “special operation”.- Strong European demand has boosted Asian refiners’ profits for producing gasoil for exports to the West. However, the refiners are also paying record premiums for Middle East crude supplies after the disruption of sanctions left buyers with limited options.WINDOW TRADES- One 380-cst high-sulphur fuel oil (HSFO) deal, two 180-cst HSFO trades- One VLSFO trade was reportedOTHER NEWS- The United States is willing to move ahead with a ban on Russian oil imports without the participation of allies in Europe, two people familiar with the matter told Reuters, in light of Russia’s invasion of Ukraine. read more – Oil prices rose on Tuesday, with Brent surging past $126 a barrel, as fears of formal sanctions against Russian oil and fuel exports spurred concerns about supply availability.ASSESSMENTSRegister now for FREE unlimited access to Reuters.comReporting by Koustav Samanta; Editing by Shinjini GanguliOur Standards: The Thomson Reuters Trust Principles. .
Palm oil vaults to historic premium over soyoil in India, sparking shifts in buying patternsThe Black Sea accounts for 60% of world sunflower oil output and 76% of exports. Ports in Ukraine will remain closed until the invasion ends. read more “Asian and European refiners have raised palm oil purchases for near-month shipments to replace sunoil. This buying has lifted palm oil to irrational price level,” said a Mumbai-based dealer with a global trading firm.”They have the option of buying soyoil as well. But prompt soyoil shipments are limited and they take much longer to land in Asia compared to palm oil,” he said.Soybean production in Argentina, Brazil and Paraguay is expected to fall because of dry weather. Price-sensitive Asian buyers traditionally relied on palm oil because of low costs and quick shipping times, but now they are paying more than $50 per tonne premium over soyoil and sunoil, said a Kuala Lumpur-based edible oil dealer.Palm oil’s price premium is temporary, however, and could fade in the next few weeks as buyers shift to soyoil for April shipments, the dealer said.Most of the incremental demand for palm oil is fulfilled by Malaysia, as Indonesia has put restriction on the exports, said an Indian refiner. “Malaysian stocks are depleting fast because of the surge in demand. It is the biggest beneficiary of the current geopolitical situation,” he said.Register now for FREE unlimited access to Reuters.com
