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Asia Fuel Oil-380-cst cash premiums rise amid limited trade; Singapore stocks rise

by April 13, 2017 General

Cash premiums of 380-cst fuel oil rose on Thursday, while time spreads of the fuel remained relatively steady, amid limited trade activity ahead of the Good Friday holiday in the following day.

– Singapore onshore fuel oil inventories snapped two weeks of declines, rising 3 percent, or 92,000 tonnes, to a total of 3.61 million tonnes in the week ended April 12, official data shows

– This came despite a 38 pct fall in net imports into Singapore, to a two-week low of 751,000 tonnes, as exports to China remained elevated at 520,000 tonne during the week.

– Traders said unloading of floating storage contributed to inventory build.

– 380-cst fuel oil cash premiums FO380-SIN-DIF were assessed 29 cents a tonne higher from the previous session at 92 cents a tonne above Singapore quotes despite relatively weaker price levels of Platts window-traded cargoes.

– Traded values in the middle and back-end of the trading window, ranged between minus 50 cents a tonne and minus $1 a tonne to Singapore quotes, respectively.

– However, 380-cst cash premiums were supported by buyers’ bids in the same laycan, which stood at a 50 cent per tonne premium for similar cargoes.

– Four cargo trades were reported in the Platts window on Thursday, the fewest since March 31, totalling 80,000 tonnes of 380-cst fuel bring the total volume of 380-cst cargo trades to 2.02 million tonnes in April.

– Trade activity in 380-cst time spreads was also limited on the Intercontinental Exchange (ICE) by 1500 Singapore time (0700 GMT) on Thursday.

– No trades were made in the 380-cst balance-of-April/May time spread keeping the contango structure of the contract unchanged from the previous session at minus 20 cents a tonne.

– Trading just 35,000 tonnes in contracts, the near-dated 380-cst May/June time spreads slipped into a 50 cent contango structure, down 20 cents from the previous session.

– State-owned PDVSA has turned to imports of vacuum gasoil (VGO) having “already fixed 3-4 cargoes (totalling) over 1.5 mln barrels” since the start of the year, industry sources say, in a signal of mounting refinery issues in the crisis-hit country.

– Singapore’s first liquefied natural gas (LNG) truck loading facility, capable of facilitate truck-to-ship LNG bunkering, is ready for operations, the MPA said in a statement.

 FUEL OIL                                                                                  
 CASH ($/T)                 ASIA CLOSE       Change   % Change   Prev       RIC
 Cargo - 180cst                      321.92    -2.46      -0.76     324.38  FO180-SIN
 Diff - 180cst                         1.00     0.51     104.08       0.49  FO180-SIN-DIF
 Cargo - 380cst                      315.42    -2.79      -0.88     318.21  FO380-SIN
 Diff - 380cst                         0.92     0.29      46.03       0.63  FO380-SIN-DIF
 Bunker (Ex-wharf)- 380cst           318.00    -2.00      -0.63     320.00  BK380-B-SIN
 Bunker (Ex-wharf) Premium             2.58     0.79      44.13       1.79

Source: Reuters (Editing by Sherry Jacob-Phillips)