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Asia Fuel Oil-380-cst cash premium hits over 10-wk high on firmer bids

The 380-cst cash premium edged up to its highest level in more than 10 weeks on Monday, supported by stronger buying interest demonstrated by higher bids during cash trading.

The 380-cst cash premium was at $1.17 a tonne to Singapore spot quotes, up 32 cents from Friday.

Buyers were seen more willing to pay higher prices, with premiums reaching as high as $4 a tonne compared with $3 on Friday, for cargoes loading over mid- to late-June.

Traders said lower arbitrage volumes expected to arrive in Asia in June had boosted sentiment recently.

Compared with April, which saw about 4.66 million tonnes of fuel oil landing in Asia, supplies in May and June are expected to be at 3.44 million tonnes and 3.06 million tonnes, respectively.

While the window to fix vessels for shipping cargoes to Asia in time for end-June arrival is open till the end of May, a Singapore-based trader said it would not be a huge increase.
"I suspect it will only grow marginally," he said.

*TENDER NEWS

Indian Oil Corp is offering 25,000 tonnes of 180-cst for loading over June 12-14 from JNPT, Mumbai, in a tender that will close on May 27, and remain valid until the next day.

The refiner is also offering 35,000 tonnes of 380-cst for loading over June 17-19 from Chennai. The one-day validity tender will close on May 28.
Source: Reuters (Reporting by Jane Xie; Editing by Subhranshu Sahu)