Asia Fuel Oil-380-cst cash premiums rise amid limited trade; Singapore stocks rise
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 $1 a tonne to Singapore quotes, respectively.
– However, 380-cst cash premiums were supported by buyers’ bids in the same laycan, which stood at a 50 cent per tonne premium for similar cargoes.
– Four cargo trades were reported in the Platts window on Thursday, the fewest since March 31, totalling 80,000 tonnes of 380-cst fuel bring the total volume of 380-cst cargo trades to 2.02 million tonnes in April.
– Trade activity in 380-cst time spreads was also limited on the Intercontinental Exchange (ICE) by 1500 Singapore time (0700 GMT) on Thursday.
– No trades were made in the 380-cst balance-of-April/May time spread keeping the contango structure of the contract unchanged from the previous session at minus 20 cents a tonne.
– Trading just 35,000 tonnes in contracts, the near-dated 380-cst May/June time spreads slipped into a 50 cent contango structure, down 20 cents from the previous session.
– State-owned PDVSA has turned to imports of vacuum gasoil (VGO) having “already fixed 3-4 cargoes (totalling) over 1.5 mln barrels” since the start of the year, industry sources say, in a signal of mounting refinery issues in the crisis-hit country.
– Singapore’s first liquefied natural gas (LNG) truck loading facility, capable of facilitate truck-to-ship LNG bunkering, is ready for operations, the MPA said in a statement.
ASSESSMENTS FUEL OIL CASH ($/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)