Asia Fuel Oil-180-cst cash diff climbs to over one-week high
SINGAPORE, Oct 12 (Reuters) - Asia's fuel oil cash differential for the 180-centistoke (cst) grade strengthened to its highest in more than a week, as buying activity resumed.
The differential was assessed $1.10 higher at a premium of $1.50 a tonne above Singapore spot quotes, highest since Oct. 3, according to Reuters data.
Low offers placed by Shell resulted in three 180-cst deals during the physical trading window, which were done at parity to a premium of 50 cents a tonne above Singapore spot quotes.
Market outlook, however, remained grim amid ample supply and subdued demand.
The November/December inter-month spread, which turns prompt next Tuesday, flipped into a contango structure for the second time this week. The contract is valued at minus 13 cents a tonne by the Asian close, according to Reuters data.
A contango price structure is when prompt prices are weaker than forward prices and typically reflects a period of weak demand.
Indian refiner Mangalore Refinery and Petrochemicals Ltd
80,000 tonnes of early November-loading 380-cst at a steady discount of around $3.00 a tonne to Singapore spot quotes, on a free-on-board (FOB) basis.
The buyer is likely to be Gunvor, trade sources say.
The refiner last sold a similar end-October loading cargo at a discount of $3.00-$4.00 a tonne to Singapore spot quotes to oil major Shell, on a FOB basis.
Indian fuel oil exports have been high due to low domestic demand during the monsoon season. Indian Oil Corp
, which has sold close to 200,000 tonnes of fuel oil in October, issued another tender to sell a November cargo.
The refiner is offering 35,000 tonnes of 380-cst for Nov. 2-4 lifting from Chennai. The tender closes on Oct. 17, with bids to remain valid until Oct. 18.
IOC last sold 35,000 tonnes of end-October loading 380-cst from Chennai to oil major BP at a discount of $5.00-$10.00 a tonne to Singapore spot quotes, on a FOB basis.
- Indian Oil Corp is offering 35,000 tonnes of 380-cst, for Nov. 2-4 lifting from Chennai, via tender which closes on Oct. 17, with a one-day validity.
- India's Mangalore Refinery and Petrochemicals Corp sold 80,000 tonnes of 380-cst, for Nov. 9-11 lifting from New Mangalore, to Gunvor at a discount of around $3.00 a tonne to Singapore spot quotes.
- India's Hindustan Petroleum Corp Ltd
sold 30,000 tonnes of 380-cst, for Oct. 16-20 lifting from Vizag, to Marubeni at a discount of $23.00-$25.00 a tonne to Singapore spot quotes.
* CASH DEALS: Three 180-cst trades.
- PetroChina bought 40,000 tonnes, for Oct. 28-Nov. 1 loading, from Shell at parity a tonne to Singapore spot quotes.
- BP bought 40,000 tonnes, for Oct. 28-Nov. 1 loading, from Shell at parity a tonne to Singapore spot quotes.
- PetroChina bought 40,000 tonnes, for Nov. 1-5 loading, from Shell at a premium of 50 cents a tonne to Singapore spot quotes.
CASH ($/T) ASIA CLOSE Change % Change Prev RIC Close Cargo - 180cst 660.40 -3.50 -0.53 663.90 Diff - 180cst 1.25 1.10 733.33 0.15 Cargo - 380cst 648.40 -5.50 -0.84 653.90 Diff - 380cst 1.50 -0.25 -14.29 1.75 Bunker (Ex-wharf)- 652.00 -7.00 -1.06 659.00 380cst Bunker (Ex-wharf) 3.60 -1.50 -29.41 5.10 Premium SWAPS ($/T) ASIA CLOSE Change % Change Prev RIC (0830 GMT) Close Brent M1 114.94 -0.20 -0.17 115.14 180cst M1 659.38 -4.50 -0.68 663.88 180cst M1/M2 0.50 0.25 100.00 0.25 180cst M2 658.88 -4.75 -0.72 663.63 Visco M1 11.75 0.87 8.00 10.88 Visco M2 12.63 0.25 2.02 12.38 380cst M1 647.63 -5.37 -0.82 653.00 380cst M1/M2 1.38 -0.37 -21.14 1.75 380cst M2 646.25 -5.00 -0.77 651.25 Cracks 180-Dubai M1 -9.38 -0.74 8.56 -8.64 Cracks 180-Dubai M2 -8.81 -0.76 9.44 -8.05 East-West M1 36.50 -0.50 -1.35 37.00 East-West M2 35.50 -0.50 -1.39 36.00 Barges M1 622.88 -4.00 -0.64 626.88 Barges M1/M2 -0.50 0.25 -33.33 -0.75 Barges M2 623.38 -4.25 -0.68 627.63 Crack Barges-Brent M1 -19.04 -0.46 2.48 -18.58 Crack Barges-Brent M2 -18.10 -0.63 3.61 -17.47
(Reporting by Lee Yen Nee; editing by James Jukwey)
Keywords: MARKETS ASIA/FUELOIL