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Tuesday, September 29th, 2020

Asia Fuel Oil-380-cst premiums ease, visco spread rises to multi-month high

by April 24, 2017 General

A slow down in interest from buyers in the Platts window pushed cash premiums of 380-cst fuel oil lower on Monday, while the front-month visco spread rose towards its highest since December after two weeks of steady gains.

Four 20,000 tonne cargoes of 380-cst fuel oil were traded in the Platts window on Monday along with a 40,000 tonne cargo of 180-cst fuel oil.

The reported 380-cst fuel oil deals traded at a premium range of 50 cents per tonne to 80 cents per tonne to Singapore quotes. This compared to Friday’s deals which were concluded at premiums of 30 cents a tonne to $1.25 a tonne to Singapore quotes.

380-cst fuel oil cash premiums FO380-SIN-DIF were 41 cents a tonne lower than the previous session at a premium of 81 cents a tonne to Singapore quotes.

A total of 3.1 million tonnes of 380-cst fuel oil have traded in the window since the start of April.

The ICE-traded May visco spread, the differential between the price of 180-cst and 380-cst fuel oil, edged higher on Monday to about $8 a tonne as continued buying interest from an unspecified international trading house continued to bid up the contract.

Reuters data showed the May visco spread at $7.75 a tonne, its highest Since early December.

 FUEL OIL                                                                                          
 CASH ($/T)                  ASIA CLOSE        Change    % Change    Prev Close  RIC
 Cargo - 180cst                        306.81     -2.39       -0.77      309.20  FO180-SIN
 Diff - 180cst                           1.87     -0.23      -10.95        2.10  FO180-SIN-DIF
 Cargo - 380cst                        297.55     -2.64       -0.88      300.19  FO380-SIN
 Diff - 380cst                           0.81     -0.41      -33.61        1.22  FO380-SIN-DIF
 Bunker (Ex-wharf)- 380cst             299.50     -3.00       -0.99      302.50  BK380-B-SIN
 Bunker (Ex-wharf) Premium               1.95     -0.36      -15.58        2.31

Source: Reuters (Editing by Jane Merriman)