The 380-cSt and benchmark 180-cSt Asia fuel oil cash discounts widened to fresh 3-month lows as buying interest in a well supplied market wanes and eager suppliers trade at weaker prices, traders said.
Only two deals totalling 40,000 tonnes were reported on Wednesday in the Platts window, split evenly in volume between the 380-cSt and 180-cSt grades, industry sources said.
The 380-cSt cargo was traded at $3.50 a tonne below Singapore spot quotes, while the 180-cSt cargo was sold at a discount of $4 a tonne.
Bids for both fuel oil grades were lower with leading bids for the 380-cSt fuel ranging between minus $5 and minus $6.25 a tonne to Singapore quotes and bids for the 180-cSt grade between minus $4 and minus $5.25 a tonne, industry sources said. Compared to yesterday, these bids are approximately $2 to $3 a tonne lower for both fuel grades, sources said.
The 380-cSt discount widened by $1.30 a tonne to $3.74 a tonne below Singapore quotes. This is the first time since Feb 29 that the discount falls below the $4 level.
Similarly, discounts for the 180-cSt fuel fell 98 cents to $3.56 a tonne below Singapore quotes, its lowest since March 1. FO180-SIN-DIF
In the swaps market, the prompt June visco contract, the price differences between 180-cSt and 380cSt fuel oil, were sold on the Intercontinental Exchange (ICE) falling from $5.50 in the previous session, to $4.75 a tonne on Wednesday, said a Singapore-based
– Iran has deferred at least one of its fuel oil loadings for June to Asia, according to a trade source with direct knowledge of the matter, at a time when the state-owned National Iranian Oil Co (NIOC) is trying to establish market share in the wake of the sanctions.
– OPEC’s oil output fell in May from near a record high, a Reuters survey found on Tuesday, as attacks on Nigeria’s oil industry and other outages outweighed increases in Iran and Gulf members.
– China is planning changes to the way it handles oil reserves by allowing private companies to build and operate some of its strategic stockpiles, while also requiring companies to maintain compulsory inventories, potentially boosting its future imports.
SINGAPORE CASH DEALS – Two cash deal reported. For further details, please see
FUEL OIL CASH ($/T) ASIA CLOSE Change % Change Prev RIC Close Cargo - 180cst 226.95 -6.71 -2.87 233.66 FO180-SIN Diff - 180cst -3.56 -0.98 37.98 -2.58 FO180-SIN-DIF Cargo - 380cst 221.62 -5.82 -2.56 227.44 FO380-SIN Diff - 380cst -4.28 -1.30 43.62 -2.98 FO380-SIN-DIF Bunker (Ex-wharf)- 380cst 220.62 -5.07 -2.25 225.69 BK380-B-SIN Bunker (Ex-wharf) Premium -1.00 0.75 -42.86 -1.75
Source: ReutersPrevious Next
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