Asian fuel oil traders sat on the sidelines on Tuesday as a fall in crude prices made themcwary of taking positions in case prices moved lower.
Fuel oil prices have fallen by $11-12 per tonne sincecFriday’s close, continuing a volatile period that saw fuel oilcprices gain by more than 5 percent at the start of last week.
See-sawing fuel oil prices have unnerved traders who see no clear direction in the market.
Oil prices have lost more than 4 percent since Sept. 8, partly on renewed concern about global oversupply following an increase in U.S. drilling activity.
“All of us are waiting for prices to come down,” a Singapore-based fuel oil trader told Reuters on Tuesday.
There were no trades in the Platt’s window in Singapore even though bids and offers were evenly matched at around 16-17.
“People are sitting on their hands. They don’t want to conclude any deals in case they make the wrong call,” a second Singapore fuel oil trader said.
September prices for 380-cst high sulphur fuel oil slipped back into discount for the first time since Aug. 15, indicating a well-supplied market, Reuters assessments showed.
But the September price for 180-cst high fuel was still at a premium compared with October’s prices, the Reuters data showed.
That came as sales of marine fuels in Singapore fell 1.4 percent from a year ago in August, the first such decline in 16 months, as fewer ships came to the city-state for refueling, data from the Maritime and Port Authority of Singapore (MPA)
Singapore’s sales of marine fuel slipped to 4.23 million tonnes in August, from 4.29 million tonnes in August 2015, after the number of ships arriving to refuel fell 3 percent in August to 3,561 vessels compared with a year ago.
China’s state oil refiners are readying to export more diesel and gasoline in coming months as a bleak outlook for what is typically the nation’s period of greatest consumption sends shivers through an already saturated global market.
China’s crude oil output fell almost 10 percent to 16.45 million tonnes in August from a year ago, the lowest in more than six years, data from the statistics bureau showed, as low prices continue to plague major producers.
Libyan forces loyal to eastern commander Khalifa Haftar said on Monday they had tightened their control over four major oil ports, including Ras Lanuf and Es Sider, that casts a Western-backed project to unite Libya and revive oil exports into deep uncertainty.
SINGAPORE CASH TRADES: No trades FUEL OIL CASH ($/T) ASIA CLOSE Change % Prev RIC Change Close Cargo - 180cst 253.88 -10.99 -4.15 264.87 FO180-SIN Diff - 180cst 0.84 0.21 33.33 0.63 FO180-SIN-DIF Cargo - 380cst 246.50 -12.47 -4.82 258.97 FO380-SIN Diff - 380cst -0.64 0.86 -228.00 0.50 FO380-SIN-DIF Bunker (Ex-wharf)- 247.96 -13.16 -5.04 261.12 BK380-B-SIN 380cst Bunker (Ex-wharf) 1.46 -0.69 -32.09 2.15 Premium
Source: ReutersPrevious Next