Singapore ex-wharf premiums for 380-cst fuel oil rose to a two-month high on Tuesday on firm demand for bunker fuels and slightly tighter availabilities of the marine fuel, said a bunker fuel trader.
Despite there being fewer ex-wharf buyers than sellers on Tuesday, traders said ex-wharf prices settled at about $243 a tonne.
Buying interest was also less pronounced in the physical cargo market, with Hin Leong purchasing 20,000 tonnes of 380-cst fuel oil from Mercuria in the Platts window, industry sources said. On Monday a total of 100,000 tonne of fuel oil were traded in the window while the daily average traded volume for July stands at 55,000 tonnes.
Cash discounts for 380-cst fuel oil slipped 23 cents to $1.23 a tonne below Singapore quotes while discounts for the benchmark 180-cst fuel FO180-SIN-DIF were 3 cents wider than the previous session at 35 cents a tonne below Singapore quotes.
In the derivatives market, the front-month July-August time spread for the 380-cst fuel oil slipped back into a discount of 25 cents a tonne to Singapore quotes after having settled on Monday at parity to Singapore quotes, its highest March 15, following a steady ascent from a discount of $2 a tonne on July 1.
In India, the fastest-growing fossil fuels market globally, total fuel demand rose 6.2 percent in June compared with the same month last year to a total of 15.65 million tonnes, official data showed on Tuesday.
India’s fuel oil sales accounted for 0.60 million tonnes of the total and represent a 17.3 percent increase from June last year.
– The oil tanker market faces choppy waters over the next 18 months as the arrival of many new ships pushes down freight rates, just as buoyant oil demand slows, potentially ending a successful run for the sector.
– Oil futures moved away from two-month lows on Tuesday as a brief halt in Iraqi crude loadings threatened to tighten supplies, but a drop in bullish bets by investors kept a lid on price gains.
SINGAPORE CASH DEALS – One cash deal reported. For further details, please see
FUEL OIL CASH ($/T) ASIA CLOSE Change % Change Prev RIC Close Cargo - 180cst 247.24 2.06 0.84 245.18 FO180-SIN Diff - 180cst -0.35 -0.03 9.37 -0.32 FO180-SIN-DIF Cargo - 380cst 240.91 1.43 0.60 239.48 FO380-SIN Diff - 380cst -1.23 -0.23 23.00 -1.00 FO380-SIN-DIF Bunker (Ex-wharf)- 380cst 242.51 1.53 0.63 240.98 BK380-B-SIN Bunker (Ex-wharf) Premium 1.60 0.10 6.67 1.50
Source: ReutersPrevious Next