14-07-2016

Asia Fuel Oil-Cash 180-cst flips to premium, ex-wharf steady amid strong bunker sales

fueloil

Cash differentials of Asia’s benchmark 180-cst fuel oil flipped to a premium for the first time in fourth months on Wednesday and ex-wharf premiums remained steady above $1 a tonne to Singapore quotes amid robust demand for bunkering fuels.

One 40,000 tonne 180-cst fuel oil cash deal was reported in the Platts window on Wednesday, trading at a premium of about $1 a tonne to Singapore quotes for the first time in months, industry sources said.

Cash differentials of the benchmark 180-cst fuel oil FO180-SIN-DIF were assessed at a premium of 26 cents a tonne to Singapore quotes, the highest since March 22.

Another 80,000 tonnes of the more actively traded 380-cst fuel oil changed hands in the window on Wednesday, albeit at slightly weaker price levels, weighing on cash differentials, sources said.

Cash discounts of the 380-cst fuel FO380-SIN-DIF slipped 12 cents to $1.11 a tonne below Singapore quotes.

Meanwhile, despite slipping from yesterday’s two-month highs, ex-wharf premiums of 380-cst fuel oil remained above $1 a tonne to Singapore quotes as Singapore marine fuel sales continue to demonstrate strength.

While sales of Singapore bunker fuels slipped 6 percent in June compared with the previous month, sales are still above 4 million tonnes a month and well above the 2016 and 2015 monthly average, official data showed.

Although volumes of 380-cst continued to represent the bulk of total sales at 73 percent, the proportion of 500-cst fuel sales grew to 22 percent of the total, its highest since records going back to 2012. That gain was at the expense of 380-cst fuel, the June sales of which fell to their lowest on record.

RELATED NEWS:
– The global glut in oil is refusing to ease and acts as a major dampener on crude prices despite robust demand growth and steep declines in non-OPEC production, the International Energy Agency said on Wednesday.

– OPEC on Tuesday gave an upbeat outlook for the oil market in 2017, saying global demand for its crude would be higher than its current production and pointing to a supply deficit rather than a sizeable, price-sapping surplus.

SINGAPORE CASH DEALS – Four cash deals reported. For further details, please see

 FUEL OIL                                                                                 
 CASH ($/T)                 ASIA CLOSE       Change   % Change  Prev      RIC
                                                                Close     
 Cargo - 180cst                      251.23     3.99      1.61    247.24  FO180-SIN
 Diff - 180cst                         0.26     0.61   -174.29     -0.35  FO180-SIN-DIF
 Cargo - 380cst                      244.00     3.09      1.28    240.91  FO380-SIN
 Diff - 380cst                        -1.11     0.12     -9.76     -1.23  FO380-SIN-DIF
 Bunker (Ex-wharf)- 380cst           245.10     2.59      1.07    242.51  BK380-B-SIN
 Bunker (Ex-wharf) Premium             1.10    -0.50    -31.25      1.60

Source: Reuters

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