11-05-2016

Asia Fuel Oil-Prompt-month time spreads diverge across platforms

fueloil

The same prompt-month time spreads of Asian 380cst fuel oil, traded on different platforms, diverged significantly on Tuesday, industry sources said.

In the Platts window, the price-publisher assessed that the May-June spreads contract for 380cst fuel oil had settled at a contango of minus 20 cents a tonne to Singapore quotes, traders said. Meanwhile, on the Intercontinental Exchange (ICE), sources indicated the contango structure of the very same contract was trading at about minus $2 a tonne to Singapore quotes at around the same time.

“Bullish players seem to have bid up spreads in the window,” said one Singapore-based trader.

In cash differentials, discounts of the benchmark 180cst fuel oil as well as the 380cst fuel remained steady despite strong trading activity in the physical window. Cash discounts of 180cst fuel oil fell 3 cents to $1.86 a tonne below Singapore quotes, while discounts of 380cst fuel narrowed 3 cents to 85 cents a tonne below Singapore quotes. FO180-SIN-DIF FO380-SIN-DIF

Four cash deals were reported on Tuesday totalling 80,000 tonnes. One 20,000 tonne cargo of 180cst fuel oil was bought at a discount of $2 a tonne below Singapore quotes, while another three 380cst cargoes each amounting to 20,000 tonnes were purchased at discounts ranging between minus $2.10 a tonne at the front of the assessment period and minus 12 cents a tonne at the end, sources
said.

TENDERS:
– The state-owned Kuwait Petroleum Corporation (KPC) issued a tender offering to sell 80,000 tonnes of 380cst high-sulphur fuel oil for delivery in May 30-31.

– India’s Mangalore Refinery and Petrochemicals Limited (MRPL) sold a 60,000 tonne cargo of 380cst high-sulphur fuel oil to Gunvor for delivery in May 20-22 and at a discount of $9-$11 a tonne so Singapore quotes.

– Taiwan’s Formosa issued a tender to sell 40,000 tonnes of 380cst high-sulphur fuel oil for delivery between May 23-25 at the port of Mailiao.

RELATED MARKET NEWS:
Libya’s crude oil output has fallen to a trickle in a standoff over export rights that prevented trading giant Glencore from loading a tanker.

– Repair crews were expected to assess wildfire damage to the Canadian energy boomtown of Fort McMurray on Tuesday as the oil sands companies surrounding the ravaged city looked at bringing production back on line.

Source: Reuters

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