The front month July-August time spread for 380-cst fuel oil narrowed its contango on Tuesday in renewed buying interest, traders said.
The 380-cst July-August time spreads discount was 50 cents narrower at minus $1.25 a tonne to Singapore quotes, Thomson Reuters data showed.
The front month viscosity spread, the price difference between 180-cst and 380-cst swaps, continued to come off its recent high and settled at $5 a tonne on Tuesday. On Friday, the spread was at $7 a tonne, its highest since Oct. 15.
In the physical market, two cash deals were fixed in the Platts window totalling 40,000 tonnes of 180-cst fuel oil. Tuesday’s deals were done at a wider discount of minus $2 to minus $2.50 a tonne to Singapore quotes, compared to the last time the 180-cst fuel traded at minus $1 a tonne on Friday.
Traders said that Mercuria was active in both seeking and offering 380-cst in the window. Mercuria’s offers for 380-cst fuel were most aggressive at minus $2 a tonne, compared to offers from Glencore, Repsol and Gunvor that ranged between a discount of 75 cents a tonne to parity to Singapore quotes, sources said.
Mercuria was also most aggressive in seeking 380-cst fuel oil after having placed bids at a discount of $5 a tonne to Singapore quotes across the assessment window, compared to others that bid in the range of about minus $2.25 to minus $4.30 a tonne to Singapore quotes, trade sources said.
Cash discounts for benchmark 180-cst fuel oil FO180-SIN-DIF were 42 cents lower to minus $2.14 a tonne to Singapore quotes while 380-cst cash discounts FO380-SIN-DIF edged 5 cents lower to minus $2 a tonne to Singapore quotes.
– Crisis-struck Venezuela is sending two supertankers filled with fuel oil across the oceans to Singapore, in what traders described as a surprise move that could help ease a tight market.
– Oil fell below $50 a barrel on Tuesday as concern about a potential slowdown in economic growth that would sap demand trumped supply outages in Nigeria and other exporting nations.
– Shipping Corporation of India (SCI) will resume sailing to Iran this month after a four-year gap, transporting an oil cargo for a state-run refiner, the chairman of India’s biggest shipping company said on Tuesday.
SINGAPORE CASH DEALS – Two cash deals reported. For further details, please see
FUEL OIL CASH ($/T) ASIA CLOSE Change % Change Prev RIC Close Cargo - 180cst 247.46 -9.22 -3.59 256.68 FO180-SIN Diff - 180cst -2.14 -0.42 24.42 -1.72 FO180-SIN-DIF Cargo - 380cst 243.24 -6.93 -2.77 250.17 FO380-SIN Diff - 380cst -2.00 0.05 -2.44 -2.05 FO380-SIN-DIF Bunker (Ex-wharf)- 380cst 244.24 -6.63 -2.64 250.87 BK380-B-SIN Bunker (Ex-wharf) Premium 1.00 0.30 42.86 0.70
Source: ReutersPrevious Next
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