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 $1 a tonne to Singapore quotes as Singapore marine fuel sales continue to demonstrate strength.
While sales of Singapore bunker fuels slipped 6 percent in June compared with the previous month, sales are still above 4 million tonnes a month and well above the 2016 and 2015 monthly average, official data showed.
Although volumes of 380-cst continued to represent the bulk of total sales at 73 percent, the proportion of 500-cst fuel sales grew to 22 percent of the total, its highest since records going back to 2012. That gain was at the expense of 380-cst fuel, the June sales of which fell to their lowest on record.
– The global glut in oil is refusing to ease and acts as a major dampener on crude prices despite robust demand growth and steep declines in non-OPEC production, the International Energy Agency said on Wednesday.
– OPEC on Tuesday gave an upbeat outlook for the oil market in 2017, saying global demand for its crude would be higher than its current production and pointing to a supply deficit rather than a sizeable, price-sapping surplus.
SINGAPORE CASH DEALS – Four cash deals reported. For further details, please see
FUEL OIL CASH ($/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: ReutersPrevious Next