Asia Fuel Oil-Trading picks up in physical market, cash discounts slip
The cash discount for 380cst Asian fuel oil widened on Tuesday even though the physical market was active, with six cash deals reported totalling 120,000 tonnes of 380cst fuel oil, the highest daily traded volume since April 15, data from industry sources showed.
Cash discounts of 380cst fuel oil widened by 30 cents a to $1.77 a tonne below Singapore quotes despite the high level of trading activity.
“Deals were done at a deeper discount today,” a Singapore-based trader said. “Most of the deals today were bids being lifted by those offering into the market suggesting that buyers weren’t being particularly aggressive in picking up cargoes.”
In contrast, trading in the swaps markets was less active, traders said. The May-June contracts narrowed their contango by 50 cents to 75 cents a tonne below Singapore quotes. The discounts for the June-July contracts narrowed to $1.75 a tonne below Singapore quotes from $2 a tonne on Monday.
RELATED MARKET NEWS:
– Saudi Aramco has sold a crude oil cargo to an independent Chinese refinery, its first spot sale to such a buyer in a sign that the world’s biggest exporter is trying to expand beyond its state-owned customers in China, a source with knowledge of the deal said.
– A rebound in oil prices this year from 12-year lows is in danger of coming to a crashing halt, as the main engine of global demand growth for the past several years starts to sputter amid signs of a gasoline glut.
SINGAPORE CASH DEALS – Six deals reported. For further details, please see
FUEL OIL CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Cargo - 180cst 203.13 1.82 0.90 201.31 FO180-SIN Diff - 180cst -1.49 0.07 -4.49 -1.56 FO180-SIN-DIF Cargo - 380cst 198.55 1.44 0.73 197.11 FO380-SIN Diff - 380cst -1.77 -0.30 20.41 -1.47 FO380-SIN-DIF Bunker (Ex-wharf)- 380cst 201.05 2.44 1.23 198.61 BK380-B-SIN Bunker (Ex-wharf) Premium 2.50 1.00 66.67 1.50
Source: Reuters (Reporting by Roslan Khasawneh. Editing by Jane Merriman)