Cash differentials of 380cst fuel oil extended last week’s losses and continued to widen their discounts on Monday amid aggressive supplier offers.
“Today’s deals were done between minus $3.50 and minus $4 a tonne. Looks like suppliers were eager to get rid of some volumes to clear some storage space,” said a Singapore-based trader.
Six deals totalling 120,000 tonnes of 380cst fuel oil were concluded on Monday with Gunvor buying four 20,000 tonne cargoes from KIB, and Vitol bought the remaining two cargoes from BP, industry sources said.
On Friday, two 380cst fuel oil cash deals for were reported which traded at a discount between minus $2 and minus $3 a tonne to Singapore quotes, the sources said.
“Even though the arbitrage window is still pretty tight, there’s plenty of fuel oil around as we saw from last week’s inventory build,” said another Singapore-based trader.
“Even if arbitrage flows over the next month are two are tight, there’s plenty of fuel oil here for now.”
Onshore stocks of Singapore fuel oil surged to an all-time high last week, jumping 19.4 percent from a week earlier to 31.002 million barrels STKRS-SIN, data from International Enterprise (IE) Singapore released on Thursday showed.
Also weighed down by aggressive selling, albeit to a lesser extent, 380cst fuel oil ex-wharf differentials widened their discount to about minus $2 a tonne to Singapore quotes on Monday, traders said.
In the Middle East, Energy trader Vitol and shipping fuel company Aegean Marine Petroleum Network swapped 7,000 tonnes of July 180-centistoke in the first-ever trade of fuel oil derivatives on the Dubai Mercantile Exchange, the DME said on Monday.
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SINGAPORE CASH DEALS – Six cash deals reported. For further details, please see
FUEL OIL CASH ($/T) ASIA CLOSE Change % Change Prev RIC Close Cargo - 180cst 229.11 -2.00 -0.87 231.11 FO180-SIN Diff - 180cst -1.34 0.07 -4.96 -1.41 FO180-SIN-DIF Cargo - 380cst 222.65 -3.47 -1.53 226.12 FO380-SIN Diff - 380cst -3.25 -0.98 43.17 -2.27 FO380-SIN-DIF Bunker (Ex-wharf)- 380cst 220.55 -3.57 -1.59 224.12 BK380-B-SIN Bunker (Ex-wharf) Premium -2.10 -0.10 5.00 -2.00
Source: ReutersPrevious Next