SINGAPORE, March 13 (Reuters) - The 180-cst fuel oil cash differential turned positive on Thursday for the first time in more than a week, underpinned by demand for the lower viscosity fuel in April, trade sources said. The 180-cst fuel oil cash differential was assessed at 33 cents a tonne to Singapore spot quotes on Thursday, up $1.33 a tonne from the day before, Reuters data showed. "I'm a little optimistic on the 180-cst due to (Asia receiving) more high viscosity material," said a Singapore-based trader. Of the 4.17 million tonnes of western fuel oil estimated for arrival in Asia, close to 2 million tonnes of it originate from the Americas and Caribbean, which export more viscous material.ID:nL3N0M4227 ID:nL3N0M02PW These cargoes, which is at least 700-centistoke, will need to be blended further into less viscous material that is suitable for cash trading in Asia, such as the 380-cst cargoes. This tallies with the latest inventory data from Singapore trade agency IE Singapore. Shipments from the Americas made up a third of total imports, which rose 18 percent to a two-week high of 1.34 million tonnes in the week to March 12. Exports, on the other hand fell almost 40 percent to a five-week low, as shipments to China and Malaysia more than halved to 104,600 tonnes and 57,000 tonnes, respectively. Exports to Taiwan were also absent after reaching 30,000 tonnes last week. Overall, Singapore onshore fuel oil stocks rose 13.05 percent in the week to March 12 to a three week high of 19.478 million barrels (3.067 million tonnes). Japan put two reactors on a shortlist for a final round of safety checks on Thursday, moving a step closer to reviving its nuclear industry, three years after the Fukushima disaster that led to the shutdown of all plants.ID:nT9N0GJ03K Market sources, while skeptical of any restart in the near future, said premiums for low-sulphur fuel oil will slip should Japan operate its nuclear plants again, which will dent demand for the heavy distillate. Since the Fukushima nuclear disaster in 2011, Japan has turned to coal, gas and oil to generate electricity. Asia is also expected to be the dumping ground for excess fuel oil from Europe once new shipping fuel rules take effect from Jan. 15. Vessels entering low sulphur zones around northwest Europe and North America have to switch from low sulphur fuel oil to gasoil as part of an effort to reduce marine pollution.ID:nL6N0M03GM *CASH DEALS: Two 380-cst trades, with BP buying both cargoes at $598 a tonne. Unipec and Glencore each sold to the oil major 20,000 tonnes of 380-cst for April 1-5 and April 6-10 loading respectively. *TENDER NEWS Taiwan's Formosa sold 35,000-45,000 tonnes of pyrolysis fuel oil for March 24-26 loading from Mailiao to Petrobras at a premium of above $70 a tonne to Singapore spot quotes for 180-cst. South Korean Western Power is seeking 45,000 tonnes of high sulphur fuel oil for April 16-20 arrival via a tender that will close on March 20.ID:nL3N0MA1ZW *MARKET NEWS Singapore marine fuel sales fell to a year's low in February, in line with fewer vessel arrivals for bunker refuelling, also at a one-year low, according to data from the Maritime and Port Authority of Singapore (MPA).ID:nL3N0MA32K FUEL OIL CASH ($/T) ASIA CLOSE Change % Change Prev RIC Close Cargo - 180cst 603.65 3.51 0.58 600.14FO180-SIN Diff - 180cst 0.33 1.33 -133.00 -1.00FO180-SIN-DIF Cargo - 380cst 597.74 1.17 0.20 596.57FO380-SIN Diff - 380cst 2.45 0.23 10.36 2.22FO380-SIN-DIF Bunker 601.00 1.00 0.17 600.00BK380-B-SIN (Ex-wharf)- 380cst Bunker (Ex-wharf) 3.26 -0.17 -4.96 3.43 Premium For a list of derivatives prices, including margins, please double click the RICs below. Brent M1BRENTSGMc1 180cst M1FO180SGSWMc1 180cst M1/M2FO180SGSDMc1 180cst M2FO180SGSWMc2 Visco M1FOVISSGDFMc1 Visco M2FOVISSGDFMc2 380cst M1FO380SGSWMc1 380cst M1/M2FO380SGSDMc1 380cst M2FO380SGSWMc2 Cracks 180-DubaiFO180SGCKMc1 M1 Cracks 180-DubaiFO180SGCKMc2 M2 East-West M1FOSGEWMc1 East-West M2FOSGEWMc2 Barges M1HFOFARAAMc1 Barges M1/M2HFOFARAASMc1 Barges M2HFOFARAAMc2 CrackHFOFARAACMc1 Barges-Brent M1 CrackHFOFARAACMc2 Barges-Brent M2 (Reporting by Jane Xie, editing by William Hardy) ((jane.xie@thomsonreuters.com)(+65 6870 3495)(Reuters Messaging: jane.xie.thomsonreuters.com@reuters.net)) Keywords: MARKETS ASIA/FUELOIL
Asia Fuel Oil -180-cst cash differential flips to positive on expected demand
March 13, 2014




















