SINGAPORE, April 16 (Reuters) - The 180-cst fuel oil crack spread to Dubai crude widened to a more than four-month low on Wednesday, as abundant supplies continued to pressure the market which has seen thin demand for the heavy distillate. The price difference between a barrel of May-loading fuel oil to Dubai crude stood at a discount of $13.39 a tonne, down nearly 10 percent from Tuesday, Reuters data showed.FO180SGCKMc1 The 380-cst June/July spread also widened by $1.50 a tonne to a discount of $2 a tonne. "I think people are finally coming to grip with the fact that demand is poor, arbitrage supplies are not coming down," said a Singapore-based trader. At least 4 million tonnes of fuel oil are expected to land in Asia in April and May, trade sources and Reuters analysis of shipping data showed. More than 3.6 million tonnes of the heavy distillate will arrive in Singapore for both months - at least 10 percent higher than the bunker fuel sales since February. Singapore marine fuel sales fell for the third straight month to a 13-month low in March, despite a rebound in vessel arrivals for bunkering, according to data from the Maritime and Port Authority of Singapore (MPA).ID:nL3N0N70RR Japan's low sulphur fuel oil stocks rose for the second straight week to 0.82 million kiloliters in the week to April 12, up 10.6 percent from the week before, data from the Petroleum Association of Japan showed. Refinery utilization rates rose marginally to 84.7 percent, from 84 percent the week before. *CASH DEALS No trades were reported. *MARKET NEWS China's implied oil demand fell 0.6 percent in the first quarter as a slowing economy dampened energy use, forcing refiners to scale back crude runs and raise exports to trim high fuel stocks. China's economy grew at its slowest pace in 18 months in the first quarter of 2014, official data showed on Wednesday, with signs of waning momentum already prompting limited government action to steady the world's second-largest economy.ID:nL3N0N70NI FUEL OIL CASH ($/T) ASIA CLOSE Change % Change Prev RIC Close Cargo - 180cst 599.70 -0.52 -0.09 600.22FO180-SIN Diff - 180cst -2.85 -1.00 54.05 -1.85FO180-SIN-DIF Cargo - 380cst 590.50 -0.81 -0.14 591.31FO380-SIN Diff - 380cst -3.05 -0.05 1.67 -3.00FO380-SIN-DIF Bunker (Ex-wharf)- 592.00 -0.50 -0.08 592.50BK380-B-SIN 380cst Bunker (Ex-wharf) 1.50 0.31 26.05 1.19 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 Crack Barges-BrentHFOFARAACMc1 M1 Crack Barges-BrentHFOFARAACMc2 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 crack to Dubai drops to more than 4-month low
April 16, 2014
