New Delhi, December 24, 2021: Asia’s cash premiums for high-sulphur fuel oil (HSFO) slipped for a fourth consecutive session in a row, while the residual fuel inventories in Singapore are escalating to 4 weekly.
The cash premiums for 380-cst HSFO were $1.23 per tonne to Singapore quotes, the lowest since Dec. 14 and $1.29 per day earlier.
The 380-cst HSFO barge crack for January traded at a discount of $11,04 a barrel to Brent on Thursday, compared with $11,05 a barrel on Wednesday. The crack gained about 20% in the last month, refinitiv reports showed.
Meanwhile, the previous year’s VLSFO crack rose to $15.64 per barrel against the Dubai crude during Asian trading hours, up from $14.99 in the previous session.
The average cash difference for Asia’s 0.5% VLSFO was at a rate of $18,91 a tonne to Singapore quotes on Thursday, compared to $18,10 per tonne on Wednesday.
BUYERS GOOGLE DEMANDED MARINE.
– Global oil demand reached its peak in 2021 when the world started to recover from the coronavirus pandemic, and overall global global consumption could reach a new record in 2022 – despite efforts to reduce fossil fuel consumption to reduce climate change.
– Gasoline and diesel use have surged this year as the consumers resumed travel and business activity. For 2022, crude consumption could reach 99.53 million barrels per day, up from 96.2 million this year, according to the International Energy Agency. That would be a short short of 2019’s daily consumption of 99.55 million barrels.
INVENTORIES
The Singapore oil industry has risen by 6.000 barrels, and reached 20.9 million barrels or 3,1 million tonnes in the week to Dec. 22, according to Enterprise Singapore.
– Weekly fuel oil inventories have averaged 2,5 million barrels so far this year, having averaged 23,8 million barrels per week last year, Reuters reported. In comparison to year-ago, onshore fuel oil inventories were 2,7 % higher.
WINDOW TRADES
– One 380 cst-long deal, two VLSFO deals, a 401 o’clock trade.
Various new things have emerged.
Asian refineries are on track to double by 2021 from the previous year, but traders and analysts say that a recovery in aviation demand to pre-pandemic levels could still be years away.
Oil prices reduced on Thursday despite recent trends like COVID-19 according to the reports published in shippingtribune.com.
