Trading of Asian fuel oil nears monthly record
3/23/2016 12:00:00 AM
SINGAPORE, March 23 (Reuters) -- The firm buying interest seen in Singapore's fuel oil markets since the start of March continued on Wednesday, lifting monthly volumes closer to last June's record level.
Fifteen trades were reported on Wednesday in the Platts window for a total 300,000 tons of fuel oil, industry sources said. The average daily volume of trades since the beginning March now stands at 284,000 tpd.
A total of 4.82 million tons of fuel oil have traded in the Singapore Market on Close (MOC) process so far in March, nearing last June's record of 5.97 million tons.
While a majority of the 15 fuel oil cargoes traded were the 380cst oil, interest in 180cst fuel oil seen since the start of the week continued into Wednesday, with one cargo changing hands.
Commodity trader Gunvor bought 20,000 tons of 180cst fuel oil from Petco at the equivalent of more than 50 cents/ton below Singapore quotes, traders said. On Tuesday, Gunvor bought 60,000 tons of the fuel at $1/ton above Singapore quotes.
Despite the strong buying interest in physical cargoes, cash premiums slipped on Wednesday due to "less aggressive" transaction prices, one Singapore-based trader said.
Front-month time spreads also fell on Wednesday due to "an absence of liquidity in the paper markets," another trader said.
April-May time spreads for 380cst fuel oil fell 25 cents to $1.50/ton below Singapore quotes, while front-month time spreads for 180cst fuel oil slipped 50 cents to a discount of $2.25/ton to Singapore quotes.
Comments