Asia Fuel Oil-Crack value up;Cash deal vols highest since Feb 20

The Asian 180-cst fuel oil crack edged up by about 5 percent on Monday to hit minus $11.91
a barrel, narrowest discount seen in more than a week as a surge in cash cargoes in the Singapore market may have provided some support, traders said.

A total of 260,000 tonnes of 180-cst fuel oil were traded in the cash market, making this the highest volume transacted in a single day since Feb. 20, when BP snapped up 300,000 tonnes of 180-cst and 380-cst grades for March lifting from Singapore, Reuters data showed.

BP was the dominant buyer on Monday, having bought almost 95 percent, or 12 out of 13 cargoes of 180-cst grade sold in the cash market mostly for August loading, while Glencore was the prominent seller having sold 11 of the 13 cargoes.

The reasons behind BP’s buying and Glencore’s selling spree were not clear.

TENDERS: India’s MRPL has offered 80,000 tonnes of 380-cst fuel oil for Sept. 2-4 loading from New Mangalore in a tender which will close on July 17. Bids are to stay valid until July
18.

Indian Oil Corp has likely sold a 35,000-tonne 380-cst fuel oil cargo for late July lifting from Chennai to Socar, but this could not be confirmed.

Korea East-West Power Co Ltd (EWP) has bought 50,000 tonnes of high sulphur fuel oil for July 27-31 arrival at Ulsan at a premium of $25 a tonne to Singapore quotes on a cost-and-freight (C&F) basis.

SINGAPORE CASH DEALS: Thirteen deals, all for 180-cst grade at 20,000-tonne per cargo.

BP bought a total of six cargoes for Aug. 3-7 loading from Singapore at various prices, ranging from parity to a discount of $0.50 to $2.50 a tonne. Of these, five were from Glencore and one from Mercuria.

BP had also bought two cargoes for Aug. 1-5 loading from Singapore, with Glencore and Mercuria to supply a cargo each at $597.75 a tonne.

Glencore sold two cargoes for Aug. 6-10 to BP at $598.50 a tonne each.

BP also picked up two more cargoes from Glencore for Aug. 9-13 loading from Singapore at a discount of $1.50 and $2.50 a tonne each.

Hin Leong bought from Glencore a cargo for July 29 to Aug. 2 loading from Singapore at $597 a tonne.
Source: Reuters (Reporting by Seng Li Peng, editing by Louise Heavens)