SINGAPORE: Strong demand for cargoes of 380-cst high-sulphur fuel oil (HSFO) propelled Asian cash premiums of the fuel to a new 7-1/2 year high on Wednesday, while supply concerns also provided support. Cash premiums for 380-cst HSFO jumped to $16.80 a tonne to Singapore quotes, their highest since January 2012 and up from $12.89 a tonne in the previous session.
A shortage of supplies has boosted fuel oil premiums in Asia to record highs in one of the first signs of the impact of new global ship fuel rules due to come into effect in 2020.
FUJAIRAH STOCKS - Inventories for heavy distillates and residues in the Fujairah Oil Industry Zone (FOIZ) were steady in the week to July 8, edging up just 0.3%, or 30,000 barrels (or about 4,500 tonnes), from the previous week to a total of 9.865 million barrels (1.472 million tonnes), data via S&P Global Platts showed.
Compared with year-ago levels, the weekly fuel oil inventories at FOIZ were 0.4% lower. Fuel oil stocks at FOIZ have averaged 10.039 million barrels, or 1.498 million tonnes, so far in 2019, Reuters calculations showed. This compares with a weekly average of 7.9 million barrels, or 1.18 million tonnes, in 2018.