Cash premiums of Asia’s 380-cst high-sulphur fuel oil edged higher on Monday, snapping four straight sessions of declines as deal values in the Singapore window improved, sources said. Meanwhile, in the paper markets, activity was muted at the start of the week, leaving the prompt-month time spreads, arbitrage spreads and fuel oil cracks largely unchanged, broker sources said.
– A total of 100,000 tonnes of fuel oil was traded in the Platts window on Monday through three 20,000-tonne cargoes of 180-cst fuel oil and another two similarly sized 380-cst fuel oil deals.
– PetroChina bought two of the 180-cst cargoes from Vitol while Gunvor bought the third from Mercuria. All three 180-cst deals were concluded at discounts of minus 75 cents to minus 50 cents a tonne to Singapore quotes.
– BP bought both 380-cst cargoes, one from Vitol at a 75 cent a tonne premium to Singapore quotes, and another from Total at a $1.25 a tonne premium.
– By comparison, three 380-cst cargoes were traded at premiums between 40 cents and $1 a tonne, while one 180-cst cargo was traded at a 50 cent a tonne discount to Singapore quotes.
– Taiwan’s Formosa is offering up to 40,000 tonnes of 380-cst fuel oil with a maximum 4 percent sulphur content loading from Mailiao on Nov. 25-27 in a tender closing on Nov. 13 with same day validity, sources said.
MARINE FUEL SALES
– Singapore’s marine fuel sales fell to a four-month low of 4.005 million tonnes in October, down 7.7 percent from September, but were largely unchanged compared with the same period a year ago, data from the Maritime and Port Authority of Singapore (MPA) showed.
– The October quantities are the third-lowest volumes for 2017 ahead of the June and February volumes. In October 2016, a total of 4.009 million tonnes of bunker fuels were sold in Singapore.
– While the latest volumes were in line with the seasonal norm, industry sources attributed the decline in October volumes from the previous month to be a result of rising outright marine fuels prices as crude oil prices climbed to their highest levels since 2015.
– The volume of bunker fuel each ship took was at its lowest since June, loading an average 1,210 tonnes each in October, Reuters calculations showed. This compared with a record of 1,320 tonnes per ship in September and an average of 1,230 tonnes per ship in 2017.
– Bahrain said an explosion which caused a fire at its main oil pipeline on Friday was caused by “terrorist” sabotage, linking the unprecedented attack to its arch-foe Iran, which denies any role in the Gulf island kingdom’s unrest. – State-run Bahrain Petroleum Company (Bapco) closed the flow of oil to the stricken pipeline, the civil defence said in a statement earlier on Saturday. – Saudi Arabia’s energy ministry said pumping to Bahrain had been suspended and the kingdom was stepping up security precautions at its own facilities.
FUEL OIL CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC
Cargo – 180cst 374.21 -2.80 -0.74 377.01 Diff – 180cst -0.50 -0.28 127.27 -0.22
Cargo – 380cst 372.22 -1.93 -0.52 374.15 Diff – 380cst 0.89 0.19 27.14 0.70
Bunker (Ex-wharf)- 375.00 -2.00 -0.53 377.00 380cst
Bunker (Ex-wharf) 2.78 -0.07 -2.46 2.85 Premium
Source: Hellenic Shipping News.