Cash discounts for 380-cst fuel oil widened on Monday amid aggressive supplier offers and an absence of willing buyers, traders said.
“Offers are even lower today but there’s no takers,” said one Singapore-based fuel oil trader.
Lukoil on Monday sold a 40,000 tonne cargo of 380-cst fuel to Mercuria at a discount of $1 a tonne to Singapore quotes in the Platts window.
On Friday, three 20,000 tonne cargoes of the same fuel grade were sold at a discount range of minus 40 cents to minus $1 a tonne to Singapore quotes, industry sources said.
Similarly, supplier offers were lower on Monday with the most aggressive offers ranging between minus 90 cents and minus $1.60 a tonne to Singapore quotes, compared to plus 90 cents to minus 90 cents a tonne to Singapore quotes the previous session.
Cash discounts for 380-cst fuel FO380-SIN-DIF were assessed at minus $1.17 a tonne to Singapore quotes on Monday, 81 cents a tonne lower than the previous session.
This was despite official data showing Singapore marine fuel sales volume surged 10 percent in February to 3.846 million tonnes compared with last year, a record high for the month.
While volumes in February were 14 percent lower than in January, when a record 4.462 million tonnes were sold, traders had widely expected even weaker volumes last month as a result of a slowdown in shipping demand, which was amplified by the Chinese New Year holidays in the first half of the month.
A third trader said stronger-than-expected February sales figures were still not enough to drain excess oil from the market.
In the ex-wharf market, typically seen reflecting underlying market fundamentals, premiums of the break-bulk edged up 47 cents a tonne from Friday to $1.96 a tonne to Singapore quotes. By comparison, ex-wharf premiums averaged about $1.87 a tonne to Singapore quotes in February and $1.76 a tonne in March so far.
FUEL OIL CASH ($/T) ASIA CLOSE Change % Change Prev RIC Close Cargo - 180cst 295.47 -6.27 -2.08 301.74 FO180-SIN Diff - 180cst -1.18 -0.59 100.00 -0.59 FO180-SIN-DIF Cargo - 380cst 289.54 -6.47 -2.19 296.01 FO380-SIN Diff - 380cst -1.17 -0.81 225.00 -0.36 FO380-SIN-DIF Bunker (Ex-wharf)- 380cst 291.50 -6.00 -2.02 297.50 BK380-B-SIN Bunker (Ex-wharf) Premium 1.96 0.47 31.54 1.49
Source: ReutersPrevious Next
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