Skip to Content

Tuesday, October 22nd, 2019

Asia Fuel Oil-Crack at 1-1/2 month low; Hin Leong on a buying spree

Closed
by July 28, 2017 General

Asia’s 180-centistoke (cst) fuel oil crack fell further to hit a 1-1/2 month low at discounts of $1.30 to Dubai crude on Friday as supplies built in key regions.

Cash deals in Singapore were vibrant with a total of 220,000 tonnes traded, the highest daily volume since May 8.

380-cst grade made up the bulk of the fuel oil traded on Friday, with Singapore trader Hin Leong buying five and selling two of the total 11 cargoes traded.

Hin Leong has been on a buying spree and bought a total of some 280,000 tonnes of fuel oil from the cash market, or more than half of the total 380-cst quantity traded since July 24.

STOCK LEVELS
Fuel oil stocks held independently at the Amsterdam-Rotterdam-Antwerp (ARA) storage hub hit a three-month high of 1.171 million tonnes in the week to Thursday, and were 49 percent higher than a year ago, data from Dutch consultancy PJK International showed.

The rise in ARA’s inventories came a day after official data showed that fuel oil stocks in the Singapore hub in the week to July 26 were at 24.5 million barrels, the highest since April 19.

TENDERS
Indian Oil Corp (IOC) has offered 35,000 tonnes of 380-cst for Aug. 24-26 loading from Chennai through a tender closing on July 31.

Korea East West Power Co (EWP) has bought 40,000 tonnes of high sulphur fuel oil for Aug. 7-11 delivery via a tender that closed on Monday. – It bought from Vitol at a premium of $1 per tonne on a cost-and-freight (C&F) basis.

Korea Western Power Co (WP) has also bought from Vitol 45,000 tonnes of high sulphur fuel oil for Aug. 7-11 delivery via a tender that closed on Wednesday at about $310 per tonne on a C&F basis.

REFINERY NEWS
Japan’s biggest oil refiner JXTG Nippon Oil & Energy Corp said it would delay the restart of the 90,000-barrel-per-day No. 3 crude distillation unit (CDU) at its Mizushima-B refinery to early August from late July as it needed more time for maintenance work.
Source: Reuters (Reporting by Seng Li Peng; Additional reporting by Jane Chung in Seoul; Editing by Susan Fenton)

Previous
Next