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

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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 INVENTORIES
– 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.

WINDOW TRADES
– 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.

SWAPS
– 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.

VENEZUELA IMPORTS
– 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.

LNG BUNKERS
– 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.

    ASSESSMENTS
 FUEL OIL                                                                                  
 CASH ($/T)                 ASIA CLOSE       Change   % Change   Prev       RIC
                                                                 Close      
 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)

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