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Asia Fuel Oil-180-cst cash premium up at 7-week high
The 180-cst cash differential spiked to a seven-week high on Thursday, widening the viscosity spread to a near seven-month high, as Asia's fuel oil supply tightens on lower arbitrage volumes for June arrival.
The 180-cst premium rose to $1.48 a tonne to Singapore spot quotes, up from 45 cents a
tonne. Reuters data showed.
Traders said there could be some pricing positions related to viscosity spreads by market
players, pushing up prices for the 180-cst market.
"There could be some agenda to widen the viscosity spread. In an environment with less
arbitrage volumes, it is easier to try pushing up the market," a Singapore-based trader said.
The viscosity spread, which measures the price difference between 180-cst and 380-cst swaps, was at $13.25 a tonne on Thursday, up from $11 a tonne.
The tightness in oil has also resulted in wide price differences between cargo volumes.
PetroChina had outstanding bids for two 380-cst cargoes, both for loading over June 16-20.
The 20,000 tonne parcel was placed at a bid of minus $1.50 to Singapore spot quotes, while the 30,000 tonne clip was at a premium of $1 a tonne to Singapore spot quotes.
"380-cst is really not plentiful, so people will just buy what they need," another Singapore-based trader said, adding that specific loading volumes could be for logistical convenience.
In other market news, Singapore's onshore fuel oil stocks rose 4.8 percent to a three-week
high of 20.775 million barrels (3.27 million tonnes) for the week ended May 21, data from trade agency IE Singapore showed on Thursday.
This was in line with imports, which rose 16 percent week on week to 1.25 million tonnes,
outpacing lower exports which were down 2.4 percent to 459,340 tonnes, IE Singapore data showed.
Exports to China more than halved to around 44,000 tonnes, while cargoes headed for Vietnam fell to 11,000 tonnes, less than a third of the level the previous week.
In Europe, one of the main sources of arbitrage fuel oil supply, heavy distillate stocks in
the region's Amsterdam, Rotterdam, Antwerp (ARA) hub fell 0.6 percent to 667,000 tonnes.
*TENDER NEWS
Indian Oil Corp is offering 30,000 tonnes of 180-cst for June 16-18 loading from Kandla in a
tender that will close May 26, with validity up till the next day.
Source: Reuters (Reporting by Jane Xie; editing by Jane Baird)
The 180-cst premium rose to $1.48 a tonne to Singapore spot quotes, up from 45 cents a
tonne. Reuters data showed.
Traders said there could be some pricing positions related to viscosity spreads by market
players, pushing up prices for the 180-cst market.
"There could be some agenda to widen the viscosity spread. In an environment with less
arbitrage volumes, it is easier to try pushing up the market," a Singapore-based trader said.
The viscosity spread, which measures the price difference between 180-cst and 380-cst swaps, was at $13.25 a tonne on Thursday, up from $11 a tonne.
The tightness in oil has also resulted in wide price differences between cargo volumes.
PetroChina had outstanding bids for two 380-cst cargoes, both for loading over June 16-20.
The 20,000 tonne parcel was placed at a bid of minus $1.50 to Singapore spot quotes, while the 30,000 tonne clip was at a premium of $1 a tonne to Singapore spot quotes.
"380-cst is really not plentiful, so people will just buy what they need," another Singapore-based trader said, adding that specific loading volumes could be for logistical convenience.
In other market news, Singapore's onshore fuel oil stocks rose 4.8 percent to a three-week
high of 20.775 million barrels (3.27 million tonnes) for the week ended May 21, data from trade agency IE Singapore showed on Thursday.
This was in line with imports, which rose 16 percent week on week to 1.25 million tonnes,
outpacing lower exports which were down 2.4 percent to 459,340 tonnes, IE Singapore data showed.
Exports to China more than halved to around 44,000 tonnes, while cargoes headed for Vietnam fell to 11,000 tonnes, less than a third of the level the previous week.
In Europe, one of the main sources of arbitrage fuel oil supply, heavy distillate stocks in
the region's Amsterdam, Rotterdam, Antwerp (ARA) hub fell 0.6 percent to 667,000 tonnes.
*TENDER NEWS
Indian Oil Corp is offering 30,000 tonnes of 180-cst for June 16-18 loading from Kandla in a
tender that will close May 26, with validity up till the next day.
Source: Reuters (Reporting by Jane Xie; editing by Jane Baird)
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