Singapore—Asian residual fuel markets, especially upstream low sulfur marine fuel, is unlikely to see any significant upside in the week of March 22-26, on a lack of impetus from any potential incremental demand.
A lackluster sentiment was also underpinned by expectations that the market would remain balanced, if not long, in the near term.MARINE FUEL 0.5% SULFUR**The premium for Singapore marine fuel 0.5%S cargo over the Mean of Platts Singapore Marine Fuel 0.5%S assessments has inched to near a 12-week low of 60 cents/mt on March 18 before close the trading week at 68 cents/mt on March 19, Platts data showed.
**The front April-May Singapore marine fuel 0.5%S swaps market structure slid to a near 14-week low of 10 cents/mt on March 18, before inching up to around 75 cents/mt during March 22 mid-morning trade in Asia.
**Supply-side pressure is likely to persist, but declining Singapore marine fuel 0.5%S crack spread is unlikely to deter Asian refiners from targeting additional spot sales in April, as margins remain healthier versus distillate fuels, refining sources said.
**Singapore marine fuel 0.5% crack to Dubai has been on a downtrend after hitting one-year high of $15.90/b on Feb. 23. It had slipped to a near 10-week low of $12.11/b on March 19, before edging up to $12.43/b during March 22 mid-morning trades.
**Taiwan's CPC to continue offering spot cargoes in April, having sold a 40,000 mt LSFO combination parcel loading in the first week of April; may match March exports of 80,000 mt, a company source said.
**Cosmo Oil looking to sell via tender LSFO loading H2 April this week, a company source said.
**Singapore demand for low sulfur marine bunker fuel likely to remain steady March 22-26, largely unchanged from a week ago, traders said.
**In Fujairah, the premium for low sulfur marine fuel is likely to edge lower March 22-26, having soared to multi-month highs over the week ended March 19, traders said.
**Tight availabilities is likely to ease on expectations of a pick up in the volume of oil that Uniper will be able to load out from its terminal, traders said.
**The premium for Fujairah-delivered marine fuel 0.5%S bunker over FOB Singapore marine fuel 0.5%S cargo ended the trading week at 13-month high of $50.47/mt on March 19.
**Supply of marine fuel at Tokyo Bay likely to be hampered by berth congestion from an unexpected maintenance at ENEOS' Negishi refinery, which is expected to last until March 31.
**Marine fuel demand at Zhoushan is expected to be steady at 30,000 mt-40,000 mt per week, even as occasional strong winds affect bunkering operations, traders said.
HIGH SULFUR FUEL OIL**Traders pin hopes on upstream high sulfur fuel oil cargo market to get a lift from potential incremental demand from within the region's utility sector.
**Singapore 180 CST cash differential may continue to firm after Bangladesh and Pakistan sought volumes for power generation, amid burgeoning South Asian procurement.
**Most of Iraq's straight run fuel oil is seen making its way to South Korea as South Korean refineries continue to consume SRFO. Iraq's SOMO is expected to announce the results of April-September SRFO sell tender March 22-26, a company source said.
