News Content
Asia Fuel Oil-380-cst discount narrows for 1st time in 5 sessions
The fuel oil market strengthened on Tuesday, with the discount on the benchmark 380-cst fuel oil narrowing for the first time in five sessions, on expectations that demand will rise with the approach of the summer season.
The 380-cst fuel oil discount narrowed by 85 cents to $2.95 a tonne to Singapore spot quotes, compared with the level on Monday, Reuters data showed.
The less viscous 180-cst grade also attracted heightened interest during cash trading, when two cargoes traded at relatively firm differentials ranging from minus $3 a tonne to minus $2.26 a tonne, Reuters calculations showed.
Demand expectations stemmed partly from North Asia's seasonal need for the heavy distillate as a feedstock to generate electricity during the summer.
"I see a pretty decent demand, and the supply is not as high as expected," a Singapore-based trader said.
Supply of low-sulphur fuel oil from Europe has declined slightly due to lower refinery runs there, traders said.
While the sulphur content is higher in Europe at 1 percent and is not suitable for use in North Asia, tighter supplies have kept LSFO premiums in Asia steady at about $140-$150 a tonne,
traders said.
Japan has a sulphur limit of 0.3 percent, and most of the supply into fuel oil-fired power
stations comes from domestic refineries, but traders may sometimes blend products pulled from Europe and other parts of Asia to produce suitable fuel.
*CASH DEALS - Two 180-cst trades.
BP sold to Hin Leong 20,000 tonnes of 180-cst for May 14-18 at $595 a tonne.
Chevron bought from BP 20,000 tonnes of 180-cst for May 25-29 at a discount of $3 a tonne to Singapore spot quotes.
Source: Reuters (Reporting by Jane Xie; editing by Jane Baird)
The 380-cst fuel oil discount narrowed by 85 cents to $2.95 a tonne to Singapore spot quotes, compared with the level on Monday, Reuters data showed.
The less viscous 180-cst grade also attracted heightened interest during cash trading, when two cargoes traded at relatively firm differentials ranging from minus $3 a tonne to minus $2.26 a tonne, Reuters calculations showed.
Demand expectations stemmed partly from North Asia's seasonal need for the heavy distillate as a feedstock to generate electricity during the summer.
"I see a pretty decent demand, and the supply is not as high as expected," a Singapore-based trader said.
Supply of low-sulphur fuel oil from Europe has declined slightly due to lower refinery runs there, traders said.
While the sulphur content is higher in Europe at 1 percent and is not suitable for use in North Asia, tighter supplies have kept LSFO premiums in Asia steady at about $140-$150 a tonne,
traders said.
Japan has a sulphur limit of 0.3 percent, and most of the supply into fuel oil-fired power
stations comes from domestic refineries, but traders may sometimes blend products pulled from Europe and other parts of Asia to produce suitable fuel.
*CASH DEALS - Two 180-cst trades.
BP sold to Hin Leong 20,000 tonnes of 180-cst for May 14-18 at $595 a tonne.
Chevron bought from BP 20,000 tonnes of 180-cst for May 25-29 at a discount of $3 a tonne to Singapore spot quotes.
Source: Reuters (Reporting by Jane Xie; editing by Jane Baird)
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
