Asia Fuel Oil-Benchmark 380-cst at biggest discount in 16 months

Mon Apr 28, 2014 11:07am GMT
 

SINGAPORE, April 28 (Reuters) - The discount on benchmark 380-cst fuel oil widened for a
fifth straight session to its biggest in more than 16 months on Monday, as demand for the heavy
distillate continued to be in the doldrums despite a brief improvement in sales late last week,
traders said.
    The 380-cst fuel oil discount stood at $3.80 a tonne to Singapore spot quotes, 5 cents wider
from Friday, Reuters data showed. 
    "China, Korea, and Japan's demand this April have not been good," a Singapore-based trader
said. 
    The weaker market outlook was reflected in lower premium levels in recent tenders.
    South Korea's Western Power bought 45,000 tonnes of high sulphur fuel oil with a maximum
sulphur content of 2.5 percent from Vitol at a premium of $19.80 a tonne to Singapore spot
quotes, on a cost-and-freight basis to Pyongtaek. The cargo will arrive May 21-25. 
    This was down more than 20 percent from the level in its previous purchase of a similar
cargo for delivery over April 16-20 from Hyundai Corp at a premium of about $26 a tonne, CFR
Pyongtaek. 
    
    *CASH DEALS - Two trades; One each for 180-cst and 380-cst.
    Gunvor sold to Mercuria 40,000 tonnes of 380-cst for May 22-26 at a discount of $1.50 a
tonne to the average Singapore spot quotes over first-half May.
    Mercuria sold to Hin Leong 40,000 tonnes of 180-cst for May 22-26 at $600 a tonne.
    
    *TENDER NEWS
    Indian Oil Corp is offering 30,000 tonnes of 180-cst for loading over May 16-18 from Kandla
in a tender that will close April 29, valid till April 30.
    Fellow Indian refiner Mangalore Refinery and Petrochemicals Ltd is offering 80,000 tonnes of
380-cst fuel oil for June 7-9 loading from New Mangalore, West Coast India, in a tender that
will close April 29, with validity until the next day.
    
 FUEL OIL                                                                                
 CASH ($/T)                 ASIA CLOSE       Change   %       Prev       RIC
                                                      Change  Close      
 Cargo - 180cst                      599.85    -0.68   -0.11     600.53  FO180-SIN
 Diff - 180cst                        -3.75    -0.60   19.05      -3.15  FO180-SIN-DIF
 Cargo - 380cst                      590.73     0.52    0.09     590.21  FO380-SIN
 Diff - 380cst                        -3.80    -0.05    1.33      -3.75  FO380-SIN-DIF
 Bunker (Ex-wharf)- 380cst           593.00     0.50    0.08     592.50  BK380-B-SIN
 Bunker (Ex-wharf) Premium             2.27    -0.02   -0.87       2.29                  
                                                                                         
 For a list of derivatives prices, including margins, please                             
 double click the RICs below.                                            
 Brent M1                                                                                
 180cst M1                                                                               
 180cst M1/M2                                                                            
 180cst M2                                                                               
 Visco M1                                                                                
 Visco M2                                                                                
 380cst M1                                                                               
 380cst M1/M2                                                                            
 380cst M2                                                                               
 Cracks 180-Dubai M1                                                                     
 Cracks 180-Dubai M2                                                                     
 East-West M1                                                                            
 East-West M2                                                                            
 Barges M1                                                                               
 Barges M1/M2                                                                            
 Barges M2                                                                               
 Crack Barges-Brent M1                                                                   
 Crack Barges-Brent M2                                                                   
 
 (Reporting by Jane Xie; editing by Jane Baird)

Market Update

  • Africa
  • US
  • Europe
  • Asia
UK £ USD =1.6568
Euro USD =1.3242
Rand USD =0.0935