US ULSD stocks rose 3.55 million barrels to 164.23 million barrels in the week that ended July 3, US Energy Information Administration data released July 8 showed, the highest such inventories have been since the agency began recording the data in the week that ended April 9, 2004.

Crude futures edged higher July 8 on the heels of a mixed US inventory report that showed both crude stocks and refined product demand on the up last week.

A rise in demand for 380 CST high sulfur bunker fuel was expected to support the high sulfur fuel oil market in Japan and South Korea in July, market sources said.

Singapore's ex-wharf term price indications for August-loading 0.5% sulfur marine fuel fell to a discount of $40-45/mt to the Mean of Platts Singapore 10ppm gasoil assessments amid oversupply of low sulfur bunker fuel, sources said on July 8.

Chinese imports of low sulfur marine fuel for domestic bonded bunkering are expected to drop significantly in the second half of the year as refiners raise production in order to meet their export quotas, market sources said July 8.

Japan's total refined oil product stocks came in at 61.26 million barrels on July 4, down 0.1% from 61.30 million barrels the previous week, the Petroleum Association of Japan said July 8.

Spanish integrated energy group Repsol reported July 7 that its upstream oil and gas production in the second quarter fell 8% year on year to 640,000 b/d of oil equivalent -- its lowest quarterly total since the 2015 purchase of Talisman -- with Libyan interruptions weighing on the total.

The Singapore August-September 10 ppm sulfur gasoil derivative timespread flipped to contango at the close of the Asia trade July 7 as a slowdown in prompt regional demand weakened the overall gasoil complex, market participants said.