Asia Fuel Oil-Crack nears two-month low on high supplies
Asia’s 180-centistoke (cst) fuel oil crack extended losses and was near a two-month low on Monday as high supplies dragged.
The crack value discount widened to $1.87 against Dubai crude versus about a discount of $1.30 to Dubai crude on July 28.
High stock levels were recorded in key storage/trading hubs of Amsterdam-Rotterdam-Antwerp (ARA) and Singapore, data Dutch consultancy PJK International and International Enterprise Singapore showed respectively.
Refinery operations disruptions in the U.S. and Europe failed to turn the market.
Production at Petrogal’s two oil refineries in Portugal has “dropped sharply,” during a five day strike that ends on July 31, union Fiquimetal said. – Separately, Royal Dutch Shell suspended loadings of oil products from its Pernis refinery in the Netherlands following a fire at the plant, the company said in a statement to traders on Sunday.
Shell also experienced a leak at its Pulau Bukom refining and petrochemical complex in Singapore, but that was contained and operations were not affected, a company spokeswoman said on Monday.
The small leak occurred on Friday, the spokeswoman said, without revealing further details on the affected unit. WINDOW TRADES One deal done.
One deal, with Hin Leong having sold to Mercuria a 380-cst cargo for Aug. 19-23 loading at $307 a tonne.
Source: Reuters (Reporting by Seng Li Peng; Editing by Keith Weir)