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Asia Fuel Oil-180-cst cash differential weakens on ample supply

SINGAPORE, Oct 4 (Reuters) - Asia's fuel oil cash differentials weakened on Thursday, as ample supply of the 180-centistoke (cst) grade pushed its differential down to a near six-month low.

The 180-cst differential dipped $1.10 to a premium of 60 cents a tonne above Singapore spot quotes, lowest since April 18, according to Reuters data.

The prompt October/November inter-month spread was steady at a four-month low of $1.88 a tonne in backwardation, Reuters assessment showed.

More supply is seen coming out of India, with Indian Oil Corp

issuing another two tenders to sell a total of 45,000 tonnes of the 180-cst fuel oil for October-loading.

IOC has so far sold four cargoes, totalling around 80,000 tonnes, of October-loading 180-cst fuel oil. Two of the cargoes were rare Kandla-loading cargoes. Industry sources said that the refiner usually supplies to the domestic market from Kandla, and weak domestic demand has forced the refiner to export instead.

In the low sulphur fuel oil (LSFO) market, requirements from utilities are expected to pick up in November-December as heating usage usually increases during the winter.

South Korean utility Korea District Heating Corp (KDHC) has issued a tender to seek 31,000 tonnes of LSFO or low sulphur waxy residue (LSWR) for delivery until Dec. 30. The tender closes on Oct. 21, according to the tender document.

Singapore onshore residual fuel oil stocks for the week ended Oct. 3 hit a five-week low of 17.905 million barrels, down 627,000 barrels from the previous week, data by state-trade agency International Enterprise (IE) showed.

* TENDERS:

- South Korean utility Korea District Heating Corp (KDHC) is seeking 31,000 tonnes of low sulphur fuel oil (LSFO) or low sulphur waxy residue (LSWR), for Dec. 30 delivery, via tender which closes on Oct. 21.

- Indian Oil Corp is offering 30,000 tonnes of 180-cst, for Oct. 28-30 lifting from Kandla, via tender which closes on Oct. 8, with a two-day validity.

- Indian Oil Corp issued another tender to sell 15,000 tonnes of 180-cst for Oct. 28-30 lifting from Haldia. The tender closes on Oct. 8, with a two-day validity.

* CASH DEALS: One 180-cst trade

- Vitol sold 20,000 tonnes, for Oct. 21-25 loading, to PetroChina at a premium of 50 cents a tonne above balance October average quotes, which is equivalent to around 85 cents a tonne above Singapore quotes.

CASH ($/T) ASIA CLOSE Change % Change Prev RIC Close Cargo - 180cst 645.65 -11.90 -1.81 657.55 Diff - 180cst 0.60 -1.10 -64.71 1.70 Cargo - 380cst 635.40 -10.65 -1.65 646.05 Diff - 380cst 2.00 -0.65 -24.53 2.65 Bunker (Ex-wharf)- 640.00 -11.50 -1.77 651.50 380cst Bunker (Ex-wharf) 4.60 -0.85 -15.60 5.45 Premium SWAPS ($/T) ASIA CLOSE Change % Change Prev RIC (0830 GMT) Close Brent M1 108.84 -1.83 -1.65 110.67 180cst M1 645.63 -10.75 -1.64 656.38 180cst M1/M2 1.75 -0.13 -6.91 1.88 180cst M2 643.88 -10.62 -1.62 654.50 Visco M1 11.50 -0.63 -5.19 12.13 Visco M2 12.13 -1.00 -7.62 13.13 380cst M1 634.13 -10.12 -1.57 644.25 380cst M1/M2 2.38 -0.50 -17.36 2.88 380cst M2 631.75 -9.63 -1.50 641.38 Cracks 180-Dubai M1 -6.38 0.40 -5.90 -6.78 Cracks 180-Dubai M2 -6.13 0.35 -5.40 -6.48 East-West M1 38.00 0.00 0.00 38.00 East-West M2 37.75 0.00 0.00 37.75 Barges M1 607.63 -10.75 -1.74 618.38 Barges M1/M2 1.50 -0.13 -7.98 1.63 Barges M2 606.13 -10.62 -1.72 616.75 Crack Barges-Brent M1 -15.59 0.20 -1.27 -15.79 Crack Barges-Brent M2 -15.24 0.23 -1.49 -15.47

(Reporting by Lee Yen Nee; Editing by William Hardy)

((lee.yennee@thomsonreuters.com)(+65 6870 3823)(Reuters Messaging: lee.yennee.thomsonreuters.com@reuters.net))

Keywords: MARKETS ASIA/FUELOIL