Cash discounts on 380cst fuel oil slipped to their lowest since April 27 as buying interest tapered off during at this week’s first trading session, industry sources said.
“Bids were quite a bit weaker today,” one Singapore-based trader said. “Suddenly as we rolled over to using the June-July swaps in assessment, buyers aren’t so keen.”
No cash deals were reported on Monday amid a decline in bids, with the best bids made between minus $2.50 to minus $4 a tonne below Singapore quotes, sources said. On Friday most bids were between minus $1 and minus $2 a tonne.
In the swaps markets, firm trading volumes propped up the front month time spreads of the 380cst June-July contracts, narrowing their contango from minus $2.50 on Friday to minus $2 today, traders said.
SINGAPORE MARINE FUELS:
Sales volumes of Singapore marine fuels rose in April from last year, marking 12 months of uninterrupted year-on-year growth, the latest official data from the Maritime and Port Authority of Singapore (MPA) showed.
April also marked a new sales record for the Emissions Control Area-compliant Low Sulphur Marine Gas Oil (LSMGO) marine fuel. A total of 127,600 tonnes of LSMGO were sold at the world’s busiest bunkering hub, well above last month’s record of 87,500 tonnes, the
TENDERS & AWARDS:
– Pakistan State Oil (PSO) purchased a record 1.54 million tonnes of fuel oil to fill a power supply gap from the country’s hydroelectric plants induced by scarce rains, traders said on Monday.
The state-owned company purchased 24 cargoes consisting of four cargoes totalling 240,000 tonnes of low-sulphur fuel oil (LSFO) and twenty 65,000 tonne cargoes totalling 1.3 million tonnes of high-sulphur fuel oil (HSFO) for delivery between late May and August,
two tender documents showed.
– Russian energy company Surgutneftegaz sold in its first ever export tender up to 5.6 million tonnes of fuel oil to Gunvor for loading June-December from the Baltic port of Ust-Luga, traders said on Monday.
Industry sources said the fuel oil originating from the Kirishi refinery was sold at premium of $25 a tonne for straight-run volumes and at discount of $7 a tonne for visbreaking fuel oil.
RELATED MARKET NEWS:
– China’s April preliminary oil demand rose 1.7 percent from a year ago, with refining throughput rising as independent refiners increased processing runs and as fuel exports dropped.
In April Chinese refiners processed 10.89 million bpd of crude oil, up 2.4 percent year on year, data from the statistics bureau showed. March’s runs had been 10.58 million bpd.
SINGAPORE CASH DEALS - No cash deals reported. For further details, please see FUEL OIL CASH ($/T) ASIA CLOSE Change % Change Prev RIC Close Cargo - 180cst 231.44 5.57 2.47 225.87 FO180-SIN Diff - 180cst -1.44 0.00 0.00 -1.44 FO180-SIN-DIF Cargo - 380cst 227.83 5.35 2.40 222.48 FO380-SIN Diff - 380cst -1.64 -0.33 25.19 -1.31 FO380-SIN-DIF Bunker (Ex-wharf)- 380cst 229.08 6.30 2.83 222.78 BK380-B-SIN Bunker (Ex-wharf) Premium 1.25 0.95 316.67 0.30
Source: ReutersPrevious Next