News Content

Asia Fuel Oil-380-cst cash discount widened to near 8-month low

The cash differential for Asia's 380-cst fuel oil slipped for a third straight session on Thursday to a near eight-month low, as the outlook of the market remained weak.

The 380-cst discount widened 11 cents a tonne to $3.75 a tonne to Singapore spot quotes, the lowest seen since Aug. 26, 2013.

Monthly term contracts for the 380-cst bunker fuel were concluded at about parity to $1 a tonne to Singapore 380-cst cargo prices, marine fuel traders said.

This was more than half the premiums done for April contracts at $2-3 a tonne, indicating a still softening demand outlook for the month ahead.

Singapore's onshore fuel oil stocks climbed 552,000 barrels (86,900 tonnes) to their two-week high of 20.364 million barrels (3.207 million tonnes) in the week to April 23, data from trade agency IE Singapore showed on Thursday.

This was in line with a rise in shipments into the city state coupled with lower exports.

Imports were up 29 percent at 1.47 million tonnes in the week to April 23, led by sharp increases in arrivals from Venezuela estimated at 290,000 tonnes. Imports from the Latin American country were absent the week before.

Saudi Arabian fuel oil into Singapore totalled 244,000 tonnes versus just 45,000 tonnes the week before.

Exports were down 36 percent at 399,000 tonnes, with China taking in only 16,000 tonnes, versus 182,000 tonnes the week before.
Source: Reuters (Reporting by Jane Xie; Editing by Subhranshu Sahu)