Asia Fuel Oil-Fuel oil markets mixed on Friday but end week higher
The Singapore fuel oil markets were mixed on Friday with the physical cash discounts edging slightly lower, while the paper markets saw front month time spreads and front month fuel oil cracks rise as traders grappled with a sell-off in crude oil markets following Britain’s vote to leave the European Union.
“It’s a bit slow today, everyone is focused on Brexit right now,” said one Singapore-based trader.
While no cash deals for the 380-cst fuel oil were reported in the Platts window on Friday, cash discounts of the fuel widened by 10 cents from Thursday to $1.95 a tonne below Singapore quotes. FO380-SIN-DIF
Since the start of the week, however, cash discounts of the 380-cst fuel oil were $1.13 narrower from $3.08 a tonne below Singapore quotes on Monday, lifted by improving sentiment as near-term supplies of Singapore fuel oil are seen tightening, industry sources said.
In the swaps market, the front month July-August time spreads narrowed their contango structure to $1 a tonne to Singapore quotes, up 50 cents a tonne from Thursday’s close and up $1 since the start of the week.
The front month 180-cst fuel oil cracks to Dubai crude rose for an eighth consecutive session on Friday to their highest levels since Feb. 26 at $6.40 a tonne.
– Oil prices slumped by more than 6 percent on Friday after Britain voted to leave the European Union, raising fears of a broader economic slowdown that could reduce demand.
SINGAPORE CASH DEALS – Two cash deals reported. For further details, please see
FUEL OIL CASH ($/T) ASIA CLOSE Change % Change Prev RIC Close Cargo - 180cst 240.90 -5.66 -2.30 246.56 FO180-SIN Diff - 180cst -2.93 -0.04 1.38 -2.89 FO180-SIN-DIF Cargo - 380cst 238.13 -5.77 -2.37 243.90 FO380-SIN Diff - 380cst -1.95 -0.10 5.41 -1.85 FO380-SIN-DIF Bunker (Ex-wharf)- 380cst 238.28 -4.62 -1.90 242.90 BK380-B-SIN Bunker (Ex-wharf) Premium 0.15 1.15 -115.00 -1.00
Source: Reuters (Reporting by Roslan Khasawneh; Editing by Susan Fenton)