Asia Fuel Oil-Higher crude helps lift 380-cst to premium


Cash differentials for Singapore’s 380-cst fuel oil flipped into a premium on Monday, lifted by renewed buying interest and rising crude oil prices, but traders remained hesitant due to volatile markets.

Gunvor bought four cargoes of 380-cst fuel oil totalling 80,000 tonnes from Mercuria in the Platts window at a price range from as low as minus 30 cents to Singapore quotes to as high as plus 80 cents a tonne to Singapore quotes, industry sources said.

Cash premiums of the 380-cst fuel oil FO380-SIN-DIF rose to 33 cents a tonne to Singapore quotes, up from a discount of 16 cents a tonne to Singapore quotes in the previous session.

This came as crude oil prices on Monday rose from multi-week lows after Venezuela said OPEC and non-OPEC producers were close to a deal to stabilise the market and as clashes in Libya disrupted attempts to boost crude exports.

Despite renewed buying interest, most traders remained on the sidelines as they continue to assess the market direction.

“The mood among traders is sombre today,” said a Singapore-based trader. “Delivered prices are up a little bit, but cargo traders are somewhat hesitant.”

No cash deals were reported in the Platts window on Friday amid uncertainty in the direction of the crude oil market which fell as much as 9 percent last week on renewed concerns of global oversupply.


– Saudi Aramco (IPO-ARMO.SE: Quote) plans to shut two refineries towards the end of this year for scheduled maintenance, four sources close to the matter said, which could free up more of the state oil company’s crude for export.

– Asian gasoil distillates refining margins are likely to remain bearish for the next few months on larger than usual exports from China, oil analysts and traders said on Monday.

SINGAPORE CASH TRADES: Four cash deals reported. For further details, please see

 FUEL OIL                                                                                
 CASH ($/T)                 ASIA CLOSE      Change   % Change  Prev      RIC
 Cargo - 180cst                     254.42     1.64      0.65    252.78  FO180-SIN
 Diff - 180cst                        0.93     0.02      2.20      0.91  FO180-SIN-DIF
 Cargo - 380cst                     247.82     2.44      0.99    245.38  FO380-SIN
 Diff - 380cst                        0.33     0.49   -306.25     -0.16  FO380-SIN-DIF
 Bunker (Ex-wharf)- 380cst          250.82     1.61      0.65    249.21  BK380-B-SIN
 Bunker (Ex-wharf) Premium            3.00    -0.83    -21.67      3.83

Source: Reuters

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