Cash differentials for 380-cSt fuel oil widened their discount on Tuesday as concerns over abundant supplies continued to weigh on the market, industry sources said.
“Onshore tanks are still pretty full and there’s a bunch of floaters out there carrying fuel oil,” said one Singapore-based trader.
“Suppliers are looking to offload some barrels to make space for incoming cargoes and transfer some of the expensive floating storage into cheaper onshore tanks,” the trader said.
Three cash deals were reported in the Platts window with Hin Leong supplying a total of 60,000 tonnes of 380-cSt fuel oil, industry sources said.
The deals were settled at a flat price between $225 and $227 a tonne, equivalent to a discount of about $4 to $5 a tonne below Singapore quotes, sources said.
Cash differentials of 380-cSt fuel oil were assessed at a discount of $2.98 a tonne below Singapore quotes on Tuesday, down 34 cents from the previous day. FO380-SIN-DIF
In the marine fuels market, sources said excess supplies and firm selling pressure also weighed on 380-cSt ex-wharf differentials which were 25 cents lower at minus $1.75 a tonne to Singapore quotes.
RELATED MARKET NEWS:
– Asian imports of Iranian oil in April rose by more than 13 percent from a year ago as Tehran tries to recoup market share lost under international sanctions, with shipments into India and South Korea offsetting a big slump in purchases by Japan.
– Top oil exporter Saudi Arabia is expected to raise the prices for most crude grades it sells to Asia in July to track a stronger Dubai benchmark, trade sources said on Tuesday.
– Global oversupply in crude oil is likely to limit price gains this year despite a series of unplanned outages and shrinking U.S. shale production, a Reuters poll showed on Tuesday.
Source: ReutersPrevious Next
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