Cash premiums of Asia’s 380-cst fuel oil narrowed for a second consecutive session on Tuesday following lower deal values, while the front-month time spreads of the mainstay fuel were offered down amid limited trade activity, industry sources said.
Three 20,000-tonne 380-cst fuel oil cargo trades were reported in the Platts window on Tuesday.
Coastal was both a buyer and seller of 380-cst fuel oil cargoes in the window, sources said.
Trafigura sold 20,000 tonnes of the fuel to Coastal at a premium of $1.25 a tonne to Singapore quotes for Sept. 4-8 loading and then Coastal sold to Hin Leong a similar cargo loading over the same laycan at a lower premium of $1 a tonne to Singapore quotes.
The third 20,000 tonne cargo was sold by Mercuria to Coastal for loading over Sept. 9-13 at a premium of $1.25 a tonne to Singapore quotes, sources said. – A total of 1.862 million tonnes of high-sulphur fuel oil has traded in the window since the start of the year, compared with 1.4 million tonnes in August.
380-CST RECENT HIGHS
Market sentiment was improved last week by firm buying interest for physical cargoes and declining fuel oil inventories across key storage hubs including Singapore and northwest Europe, sources said.
By Friday, 380-cst cash premiums rose to $1.58 a tonne to Singapore quotes, their highest since July 4, while the front-month 380-cst time spread had climbed to $2.25 a tonne, its highest since June 29.
On Tuesday, 380-cst fuel oil cash premiums fell 32 cents a tonne from the previous session to $1.15 a tonne to Singapore quotes, a four session low.
The 380-cst Oct/Nov time spreads had slipped to about $2.05 a tonne on Tuesday by 5.45 p.m. Singapore time (0945 GMT), 15 cents lower than the previous session amid limited trade volumes, sources said.
Shippers are sending oil cargoes originally bound for Venezuela to other spots in Latin America and the Caribbean in advance of coming hurricanes that threaten to further disrupt oil flows in the region, according to traders and Reuters data.
Iraq does not see the need for more output cuts now, but if there is a need the country will support consensus within the Organization of the Petroleum Exporting Countries (OPEC), Iraq’s oil minister Jabar al-Luaibi said on Tuesday.
Source: ReutersPrevious Next