News Content
Asia Fuel Oil-180-cst crack to Dubai drops to more than 4-month low
The 180-cst fuel oil crack spread to Dubai crude widened to a more than four-month low on Wednesday, as abundant supplies continued to pressure the market which has seen thin demand for the heavy distillate.
The price difference between a barrel of May-loading fuel oil to Dubai crude stood at a discount of $13.39 a tonne, down nearly 10 percent from Tuesday, Reuters data showed.
The 380-cst June/July spread also widened by $1.50 a tonne to a discount of $2 a tonne.
"I think people are finally coming to grip with the fact that demand is poor, arbitrage supplies are not coming down," said a Singapore-based trader.
At least 4 million tonnes of fuel oil are expected to land in Asia in April and May, trade sources and Reuters analysis of shipping data showed.
More than 3.6 million tonnes of the heavy distillate will arrive in Singapore for both months - at least 10 percent higher than the bunker fuel sales since February.
Singapore marine fuel sales fell for the third straight month to a 13-month low in March, despite a rebound in vessel arrivals for bunkering, according to data from the Maritime and Port Authority of Singapore (MPA).
Japan's low sulphur fuel oil stocks rose for the second straight week to 0.82 million kiloliters in the week to April 12, up 10.6 percent from the week before, data from the Petroleum Association of Japan showed.
Refinery utilization rates rose marginally to 84.7 percent, from 84 percent the week before.
*CASH DEALS
No trades were reported.
*MARKET NEWS
China's implied oil demand fell 0.6 percent in the first quarter as a slowing economy dampened energy use, forcing refiners to scale back crude runs and raise exports to trim high fuel stocks.
China's economy grew at its slowest pace in 18 months in the first quarter of 2014, official data showed on Wednesday, with signs of waning momentum already prompting limited government action to steady the world's second-largest economy.
Source: Reuters (Reporting by Jane Xie, editing by William Hardy)
The price difference between a barrel of May-loading fuel oil to Dubai crude stood at a discount of $13.39 a tonne, down nearly 10 percent from Tuesday, Reuters data showed.
The 380-cst June/July spread also widened by $1.50 a tonne to a discount of $2 a tonne.
"I think people are finally coming to grip with the fact that demand is poor, arbitrage supplies are not coming down," said a Singapore-based trader.
At least 4 million tonnes of fuel oil are expected to land in Asia in April and May, trade sources and Reuters analysis of shipping data showed.
More than 3.6 million tonnes of the heavy distillate will arrive in Singapore for both months - at least 10 percent higher than the bunker fuel sales since February.
Singapore marine fuel sales fell for the third straight month to a 13-month low in March, despite a rebound in vessel arrivals for bunkering, according to data from the Maritime and Port Authority of Singapore (MPA).
Japan's low sulphur fuel oil stocks rose for the second straight week to 0.82 million kiloliters in the week to April 12, up 10.6 percent from the week before, data from the Petroleum Association of Japan showed.
Refinery utilization rates rose marginally to 84.7 percent, from 84 percent the week before.
*CASH DEALS
No trades were reported.
*MARKET NEWS
China's implied oil demand fell 0.6 percent in the first quarter as a slowing economy dampened energy use, forcing refiners to scale back crude runs and raise exports to trim high fuel stocks.
China's economy grew at its slowest pace in 18 months in the first quarter of 2014, official data showed on Wednesday, with signs of waning momentum already prompting limited government action to steady the world's second-largest economy.
Source: Reuters (Reporting by Jane Xie, editing by William Hardy)
Latest News
- For the first time, tianjin Port realized the whole process of dock operati...
- From January to August, piracy incidents in Asia increased by 38%!The situa...
- Quasi-conference TSA closes as role redundant in mega merger world
- Singapore says TPP, born again as CPTPP, is now headed for adoption
- Antwerp posts 5th record year with boxes up 4.3pc to 10 million TEU
- Savannah lifts record 4 million TEU in '17 as it deepens port
