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Thursday, September 19th, 2019

Asia Fuel Oil-Largest 180-cst trades since Aug. 3 on lower prices

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by October 18, 2016 General

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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)

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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)

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