Asia Fuel Oil-Largest 180-cst trades since Aug. 3 on lower prices
A total of 40,000 tonnes of benchmark 180-cst fuel oil exchanged hands in the Platts window on Tuesday, the highest volume in more than two months after some suppliers lowered price levels, industry sources said.
Vitol lifted two 20,000 cargoes from Mercuria at a premium of about $1.50 a tonne to Singapore quotes in the Platts Market-on-Close (MOC) window, sources said, whereas Hin Leong paid Chevron a premium of $2.25 a tonne for 20,000 tonnes on Friday.
The last time 40,000 tonnes or more of 180-cst fuel traded in the Platts window in a single day was Aug. 3, data compiled by Reuters showed.
The lower transaction price levels weighed on 180-cst fuel premiums, knocking them 31 cents lower on Tuesday to $1.69 a tonne above Singapore quotes.
Traders said the weaker 180-cst fuel oil cash premiums were the result of softer spot demand and a slight increase in replenishment cargoes.
The weaker 180-cst complex was also reflected in prompt month time spreads. The Nov/Dec spread traded 25 cents lower on Tuesday from the previous session at a discount of 25 cents, well below the $1.27 a tonne average premium for September.
TENDERS & AWARDS OUTSTANDING ASIA/MIDEAST FUEL OIL TENDERS: ISSUER GRADE: VOLUME: DELIVERY CLOSE (VALID) DATE: **Taiwan/Formo S: 380cst 4% S max 40KT Nov 1-3 Oct 19 (Oct 20) sa (Mailiao) India/MRPL S: VGO (Mangalore) 40KT Nov 3-10 Oct 19 (Oct 20) RECENT ASIA/MIDEAST FUEL OIL TENDER AWARDS, SPOT SALES: ISSUER GRADE: VOLUME: DELIVERY RESULT DATE: *India/IOC S: 380cst HSFO 35KT x5 Nov - Jan Gulf Petrochem/ MOPS 380 -$7-$8 (Chennai) Taiwan/CPC B: LSFO 0.5% S max 40KT Nov 1-30 NA/ MOPS 180 +50-55 CFR (Kaohsiung, Keelung, Taichung, or other)
– Iran’s October crude and condensate exports are set to hold near five-year highs hit in September, a source with knowledge of its preliminary tanker schedule said, reflecting Tehran’s success in boosting shipments after Western sanctions were lifted.
– U.S. shale oil production was expected to fall for a 12th consecutive month in November, according to a U.S. government forecast released on Monday, on the back of a two-year global rout in oil markets.
SINGAPORE CASH TRADES: Two cash deals reported. For further details, please see
FUEL OIL CASH ($/T) ASIA CLOSE Change % Change Prev RIC Close Cargo - 180cst 287.21 0.60 0.21 286.61 FO180-SIN Diff - 180cst 1.69 -0.31 -15.50 2.00 FO180-SIN-DIF Cargo - 380cst 279.57 2.26 0.81 277.31 FO380-SIN Diff - 380cst 0.04 0.30 -115.38 -0.26 FO380-SIN-DIF Bunker (Ex-wharf)- 380cst 280.00 0.50 0.18 279.50 BK380-B-SIN Bunker (Ex-wharf) Premium 0.43 -1.76 -80.37 2.19
Source: Reuters (Editing by David Clarke)