Asia Fuel Oil-Cargo deal activity picks up as bunker sales fall
Deal activity in the Singapore fuel oil market picked up on Thursday as demand in the world’s largest bunkering hub showed signs of weakness, industry sources said.
Sales of marine fuels in Singapore fell 9.4 percent in September from a month ago, sinking to an eight-month low as fewer ships came to the city-state for refuelling, official data released on Thursday showed.
Five cash deals were reported in the Platts window on Thursday totalling 100,000 tonnes of 380-cst fuel oil, the most in number and volume since Sept. 14, industry sources said.
Cash differentials of the 380-cst fuel oil FO380-SIN-DIF flipped into a discount of 34 cents a tonne to Singapore quotes, down from a premium of 12 cents a tonne in the previous session. Cash differentials were weighed down by suppliers’ eagerness to offload cargoes to help offset slowing bunker fuel demand, industry sources said.
Despite the slow down in bunker fuel demand, onshore inventories of Singapore fuel oil still managed to find an outlet abroad, dropping 1.624 million barrels (or about 242,000 tonnes) in the week to Oct. 12, the latest official data showed. Onshore fuel oil inventories now stand at a total of 23.69 million barrels (or 3.54 million tonnes).
– China imported record volumes of crude oil last month, eclipsing the United States as the world’s top buyer of foreign oil as Beijing’s state reserves shipped in cheap crude to fill new storage tanks.
– OPEC’s plan to try to limit global oil production have served to reinforce renowned hedge fund manager Pierre Andurand’s bullish stance on the prospects for crude prices.
SINGAPORE CASH TRADES: Five cash deals reported. For further details, please see
FUEL OIL CASH ($/T) ASIA CLOSE Change % Change Prev RIC Close Cargo - 180cst 283.01 -5.24 -1.82 288.25 FO180-SIN Diff - 180cst 0.82 0.01 1.23 0.81 FO180-SIN-DIF Cargo - 380cst 275.02 -5.32 -1.90 280.34 FO380-SIN Diff - 380cst -0.34 -0.46 -383.33 0.12 FO380-SIN-DIF Bunker (Ex-wharf)- 380cst 276.50 -6.00 -2.12 282.50 BK380-B-SIN Bunker (Ex-wharf) Premium 1.48 -0.68 -31.48 2.16
Source: Reuters (Editing by Mark Potter)