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Asia Fuel Oil-Intermonth spreads dip; ample supply persists

SINGAPORE, Oct 11 (Reuters) - Asia's fuel oil market weakened on Thursday, with intermonth spreads erasing the previous session's gains as concerns over an over-supplied market outweighed demand hopes.

The balance of October/November spread for 180-centistoke (cst) fuel oil fell 75 cents to a backwardation of 25 cents, a two session low, according to Reuters data.

The November/December, which turns prompt next Tuesday, was also valued at a backwardation of 25 cents a tonne by the Asian close, down a dollar from the previous session.

Cash differential for the 180-cst grade also weakened, falling by 60 cents to a premium of 15 cents a tonne above Singapore spot quotes.

Activity in the feedstock market in China was subdued, as refiners chose to stay at the sidelines, anticipating prices to fall further. Eyes were also on the result of Rosneft's term tender to sell a total of 1.2 million tonnes of M100 straight-run fuel oil for the period November-April.

Singapore onshore residual fuel oil stocks for the week ended Oct. 10 rose 1.7 million barrels to a three-week high of 19.605 million barrels, data by state-trade agency International Enterprise (IE) showed.

The rise was mainly due to higher Western inflows, which are likely to stay heavy until the end of October. Higher Indian exports may keep inventory levels high too.

In Japan, stocks of high and low sulphur C-type fuel oil rose around three percent in the week to Oct. 6, data released by the Petroleum Association of Japan (PAJ) showed.

* CASH DEALS: No trades reported

CASH ($/T) ASIA CLOSE Change % Change Prev RIC Close Cargo - 180cst 663.90 1.10 0.17 662.80 Diff - 180cst 0.15 -0.60 -80.00 0.75 Cargo - 380cst 653.90 3.45 0.53 650.45 Diff - 380cst 1.75 0.75 75.00 1.00 Bunker (Ex-wharf)- 659.00 4.00 0.61 655.00 380cst Bunker (Ex-wharf) 5.10 0.55 12.09 4.55 Premium SWAPS ($/T) ASIA CLOSE Change % Change Prev RIC (0830 GMT) Close Brent M1 115.14 0.65 0.57 114.49 180cst M1 663.88 1.38 0.21 662.50 180cst M1/M2 0.25 -0.75 -75.00 1.00 180cst M2 663.63 2.13 0.32 661.50 Visco M1 10.88 -1.87 -14.67 12.75 Visco M2 12.38 0.00 0.00 12.38 380cst M1 653.00 3.25 0.50 649.75 380cst M1/M2 1.75 1.12 177.78 0.63 380cst M2 651.25 2.12 0.33 649.13 Cracks 180-Dubai M1 -8.64 -0.51 6.27 -8.13 Cracks 180-Dubai M2 -8.05 -0.37 4.82 -7.68 East-West M1 37.00 0.00 0.00 37.00 East-West M2 36.00 -1.00 -2.70 37.00 Barges M1 626.88 1.38 0.22 625.50 Barges M1/M2 -0.75 -1.75 N/A 1.00 Barges M2 627.63 3.13 0.50 624.50 Crack Barges-Brent M1 -18.58 -0.17 0.92 -18.41 Crack Barges-Brent M2 -17.47 -0.12 0.69 -17.35

(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