Asia Fuel Oil-Ex-Wharf Premiums Sink To 2-Week Low As Supplies Improve
Singapore ex-wharf premiums for the 380-cst fuel oil sank to a two-week low on Friday as indications of incoming arbitrage supplies eased concerns of on-specification bunker fuel shortages, industry sources said.
Ex-wharf premiums for the 380-cst fuel oil fell by $1.97 a tonne from the previous close to $1.21 a tonne to Singapore quotes, its lowest since Oct. 26.
“Some of the usual players are still not quoting (for ex-wharf) but supplies are slowly coming back,” said a Singapore-based trader.
Meanwhile, fuel oil stocks independently held in the Amsterdam-Rotterdam-Antwerp (ARA) oil hub rose to a four-week high in the week to Nov. 10 as post-turnaround refinery output in Europe rose, traders said.
Inventories in the oil hub rose 10 percent over the past week, or 64,000 tonnes, to a total of 637,000 tonnes, according to Dutch consultancy PJK International.
Compared to last year, however, weekly ARA fuel oil inventories are 45 percent below the 1.51 million tonnes recorded in the week to Oct. 12, 2015.
Fuel oil stocks in the ARA hub reached a near two-year low in the week to Oct. 13.
In Indonesia, state-owned Pertamina will shut its Balikpapan refinery for maintenance and the single point mooring (SPM) system for its Cilacap refinery in March, according to three sources close to the matter.
The 260,000 barrel per day (bpd) Balikpapan refinery in East Kalimantan province will shut for 30 days, said an integrated supply chain official from Pertamina, declining to say which specific units at the plant would be affected.