Cash premiums for Asia’s 380-cst high-sulphur fuel oil cargoes rose to a near one-month high on Friday amid higher deal values when compared to the previous session. Bids for 380-cst fuel oil cargoes were higher relative to Thursday in the Platts window but still failed to attract many suppliers, keeping traded volumes of physical fuel oil low on Friday. Meanwhile, the front-month 180-cst fuel oil crack to Dubai crude widened its discount further from a near six-week high seen on Wednesday as rising inventories in key storage hubs weighed, sources said.
– Fuel oil stocks in the Amsterdam-Rotterdam-Antwerp (ARA) oil hub rose for a second straight week, up 2 percent, or 22,000 tonnes, to 1.356 million tonnes in the week to Nov. 2, PJK data showed.
– Compared to last year, ARA fuel oil inventories are up 137 percent and are well above the five-year average of 851,000 tonnes for this time of year.
– Few fuel oil exports contributed to the build in inventories, industry sources said.
– One outgoing fuel oil cargo was reported over the past week from the ARA hub to Singapore, PJK data showed.
– This week, official data showed Singapore fuel oil inventories rose for a fourth straight week to a total of 3.84 million tonnes in the week to Nov. 1. Inventories in the Fujairah Oil Industry Zone (FOIZ) rose for a third consecutive week in the week to Oct. 30 to a total of 1.4 million tonnes.
– One cargo trade was reported in the Platts window, totalling 20,000 tonnes of 380-cst fuel oil. – BP bought the 380-cst fuel oil cargo from Total at a premium of $1.75 a tonne to Singapore quotes, sources said.
– By comparison, four 380-cst fuel cargoes changed hands on the window on Thursday at premiums of about $1-$1.50 a tonne to Singapore quotes.
– UAE’s ADNOC is offering four 85,000-90,000-tonne cargoes of 70-80-cst straight-run fuel oil with a maximum 1.2 percent sulphur content loading in Ruwais over December 10-12, 15-17, 20-22 and 25-27 in a tender closing on Nov. 7, sources said.
– India’s IOC sold up to 35,000 tonnes of 380-cst fuel oil with a maximum 4.6 percent sulphur content loading over Nov. 14-16 from Chennai to Gunvor at an unknown price level, sources said.
– India’s HPCL sold up to 30,000 tonnes of 380-cst fuel oil with a maximum 4.5 percent sulphur content loading over Nov. 8-10 from Mumbai to Shell at an unknown price level, sources said.
– Shell has placed the Magic Star tanker vessel on subs to load fuel oil from Mumbai on Nov. 8 for discharge into Fujairah on Nov. 15, ship tracking data in Thomson Reuters Eikon shows.
– Taiwan’s Formosa sold up to 40,000 tonnes of 380-cst fuel oil with a maximum 4 percent sulphur content loading from Mailiao on Nov. 17-19 to Mercuria at an unknown price, sources said.
ASSESSMENTS FUEL OIL CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC
Cargo – 180cst 361.88 2.66 0.74 359.22 Diff – 180cst 0.20 -0.14 -41.18 0.34
Cargo – 380cst 359.04 2.91 0.82 356.13 Diff – 380cst 1.68 0.20 13.51 1.48
Bunker (Ex-wharf)- 361.00 3.00 0.84 358.00 380cst
Bunker (Ex-wharf) 1.96 0.09 4.81 1.87 Premium
Source: Hellenic Shipping News.