News Content
Asia Fuel Oil-Physical cargo market weakens despite stronger swaps
The physical 380-cst fuel oil cash differential softened for the second straight session to a more than seven-month low on Thursday, failing to keep pace with a stronger derivative market, as weak demand and ample supplies continued to weigh on the Asian fuel oil market, sources said.
The 380-cst fuel oil cash discount widened to $1.75 a tonne to Singapore spot quotes, down from minus $1.39 a tonne the day before, Reuters data showed.
In contrast, the 380-cst timespread, or price difference between April and May 380-cst swaps, narrowed to minus $1.25 a tonne on Thursday, from minus $2.25 a tonne, suggesting on paper some recovery.
A firming timespread usually, though not always, coincides with stronger cash differentials.
However, voluminous supplies in Asia, mostly from the West, have been met with slowing demand for the heavy distillate from both the marine and power sectors. China demand has also thinned, traders said.
It appears that most trading houses are struggling with ample supplies, said a Singapore-based trade source.
In other market news, International Enterprise (IE) Singapore will not issue its Singapore oil statistics data for the week of April 3 to April 9, and as such Reuters will not be able publish the weekly numbers on April 10.
*TENDER NEWS
India's Essar Oil is offering 75,000 tonnes of vacuum gasoil for loading over May 6-10 from Vadinar. The tender closed on Thursday, and will be valid till the next day.
Indian Oil Corp is offering 25,000 tonnes of 180-cst for loading over May 3-5 from Mumbai in a tender that will close on April 16, with validity until the next day.
*CASH DEALS: Two 380-cst trades.
Glencore and Vitol each sold to Hin Leong 20,000 tonnes of 380-cst for May 6-10 at a discount of $1.50 a tonne to Singapore spot quotes over May.
*MARKET NEWS
Venezuela's largest refining centre is working at 67 percent capacity, a slight decline compared with January even though state-run PDVSA restarted two of its crude distillation units in recent months, according to an internal document seen by Reuters on Wednesday.
The 955,000-barrel-per-day (bpd) Paraguana Refining Center (CRP), which includes the Amuay and Cardon refineries on Venezuela's western coast, has had frequent operational problems since a big explosion in 2012 that killed more than 40 people.
Source: Reuters (Reporting by Jane Xie; Editing by Anand Basu)
The 380-cst fuel oil cash discount widened to $1.75 a tonne to Singapore spot quotes, down from minus $1.39 a tonne the day before, Reuters data showed.
In contrast, the 380-cst timespread, or price difference between April and May 380-cst swaps, narrowed to minus $1.25 a tonne on Thursday, from minus $2.25 a tonne, suggesting on paper some recovery.
A firming timespread usually, though not always, coincides with stronger cash differentials.
However, voluminous supplies in Asia, mostly from the West, have been met with slowing demand for the heavy distillate from both the marine and power sectors. China demand has also thinned, traders said.
It appears that most trading houses are struggling with ample supplies, said a Singapore-based trade source.
In other market news, International Enterprise (IE) Singapore will not issue its Singapore oil statistics data for the week of April 3 to April 9, and as such Reuters will not be able publish the weekly numbers on April 10.
*TENDER NEWS
India's Essar Oil is offering 75,000 tonnes of vacuum gasoil for loading over May 6-10 from Vadinar. The tender closed on Thursday, and will be valid till the next day.
Indian Oil Corp is offering 25,000 tonnes of 180-cst for loading over May 3-5 from Mumbai in a tender that will close on April 16, with validity until the next day.
*CASH DEALS: Two 380-cst trades.
Glencore and Vitol each sold to Hin Leong 20,000 tonnes of 380-cst for May 6-10 at a discount of $1.50 a tonne to Singapore spot quotes over May.
*MARKET NEWS
Venezuela's largest refining centre is working at 67 percent capacity, a slight decline compared with January even though state-run PDVSA restarted two of its crude distillation units in recent months, according to an internal document seen by Reuters on Wednesday.
The 955,000-barrel-per-day (bpd) Paraguana Refining Center (CRP), which includes the Amuay and Cardon refineries on Venezuela's western coast, has had frequent operational problems since a big explosion in 2012 that killed more than 40 people.
Source: Reuters (Reporting by Jane Xie; Editing by Anand Basu)
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