Spot premiums of Australia’s Vincent crude hit a new record amid strong demand for low sulfur marine fuel, trade sources said.
Two 550,000-barrel cargoes of Vincent crude for March-loading were heard to have traded at premiums of around $11.50/b to Platts Dated Brent crude assessments, FOB, much higher compared to the high-$9s/b premiums heard for February-loading barrels, Asian sweet crude trade sources with close knowledge of the spot market deals told S&P Global Platts.
The spot premiums for the crude, which has an API gravity of 19 and a sulfur content of 0.15%, were the highest-ever recorded, according to Platts data.
Resilient product cracks in the marine fuel oil 0.5% sulfur market has boosted demand for the heavy sweet crude for fuel oil blending. The second-month marine fuel oil 0.5% swap crack versus Dubai crude swap averaged at $9.76/b from Feb. 1 to Feb. 10, up 15% from $8.46/b average over the whole of January, and the highest since February 2020, Platts data showed.
Northeast Asia’s marine fuel demand, especially from the container shipping sector, has been quite robust in recent months as the region’s exports of manufactured goods surged, in line with a sharp increase in global online shopping activity, as well as growing consumer demand for remote-working electronic and tech devices during the prolonged coronavirus pandemic, South Korean shipping industry sources and analysts told Platts.
South Korea’s exports in December 2020 jumped 13% year on year, marking the highest growth since 22.5% increase in October 2018, government data showed. China’s December goods and services exports rose 18.1% from a year earlier, beating expectations for a 15% rise…
