SINGAPORE, March 25 (Reuters) - The 180-cst fuel oil cash premium slid for the second straight session to a week-low on Tuesday, on the back of robust selling interest due to lower than usual demand for the blendstock in mid-April. The 180-cst cash premium was down 85 cents a tonne to 90 cents to Singapore spot quotes, Reuters data showed. BP sold 60,000 tonnes of 180-cst fuel oil at premiums ranging from parity to $1 a tonne to Singapore spot quotes, at least 40 percent lower than the assessed premium of $1.75 a tonne on Monday. Prompter cargoes loading over April 12-18 were priced at parity to 25 cents a tonne, versus $1 a tonne for parcels loading over April 18-22. According to Reuters' analysis of shipping fixtures, only about 370,000 tonnes of western supply due to arrive in Singapore between April 11-20 will originate from the Americas, compared with 800,000 tonnes that would arrive in late April.ID:nL3N0M02PW This could mean lower demand for the 180-cst fuel oil, which can be used as a blendstock. Fuel oil sourced from the Americas, including the United States and the Caribbean, are typically more viscous and need to be blended to meet Asia's trading specifications, trade sources said. In the United States, the closure of the vital Houston Ship Channel looked set to extend to a fourth day after the Coast Guard struggled to finish cleaning up after an oil barge spill on Monday. Exxon has cut production at its 560,500 barrel-per-day (bpd) refinery in Baytown, Texas. While the channel typically affects the flow of crude oil and vessels from the Gulf Coast to refiners and terminals inland, congestion along the Gulf Coast terminals could potentially disrupt fuel oil loadings. However, an Asia-based trader that moves fuel oil from the US into Asia said "the spill is not hampering the fuel oil business as yet." *CASH DEALS - Four 380-cst and three 180-cst deals BP bought from Mercuria 20,000 tonnes of 380-cst for April 9-13 at $593.50 a tonne. Hin Leong bought from Mercuria 20,000 tonnes of April 14-18 at $593.50 a tonne. BP bought from Glencore 20,000 tonnes of 380-cst for April 9-13 at a discount of 50 cents a tonne to Singapore spot quotes. Vitol bought from Glencore 20,000 tonnes of 380-cst for April 20-24 at a premium of 50 cents a tonne to Singapore spot quotes. Vitol bought from BP 20,000 tonnes of 180-cst for April 18-22 at a premium of $1 a tonne to Singapore spot quotes. Glencore bought from BP 20,000 tonnes of 180-cst for April 12-16 at a premium of 25 cents a tonne to Singapore spot quotes. BP sold to Mercuria 20,000 tonnes of 180-cst for April 14-18 at parity to Singapore spot quotes. *TENDER NEWS Vietnam's Petrolimex, which does not regularly import fuel oil on spot basis, has bought the full 110,000 tonnes of fuel oil sought through a tender for delivery over March 28 to May 9. It will pay about $2 a tonne premium to Singapore quotes on a FOB basis for C-spec fuel oil, about $30 a tonne premium for K-spec to the same formula, and a premium of $23 a tonne to Singapore quotes on a FOB basis for A-specs. All these specs are similar to the 180-centistoke grade fuel oil but differ in density levels. For more details, please seeFUEL/TENDA The 380-cst fuel oil cargoes were sealed at $3 a tonne premium to Singapore quotes on a FOB basis.ID:nL4N0MM1HU FUEL OIL CASH ($/T) ASIA CLOSE Change % Change Prev RIC Close Cargo - 180cst 602.58 -0.65 -0.11 603.23FO180-SIN Diff - 180cst 0.90 -0.85 -48.57 1.75FO180-SIN-DIF Cargo - 380cst 593.28 -0.81 -0.14 594.09FO380-SIN Diff - 380cst 0.30 -0.05 -14.29 0.35FO380-SIN-DIF Bunker 596.50 -0.50 -0.08 597.00BK380-B-SIN (Ex-wharf)- 380cst Bunker (Ex-wharf) 3.22 0.31 10.65 2.91 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) ((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 premium down at a week's low
March 25, 2014
