Asia Fuel Oil-Cash premiums steady; Aug/Sept eases – Ameratex Energy Reporting

23 Jul

SINGAPORE, July 23 (Reuters) – Asian fuel oil cash premiums were largely steady on Monday,
as activity in the physical trading window was muted for the third consecutive session.
    The premium for 180-centistoke (cst) eased 15 cents to $3.75 a tonne above Singapore spot
quotes, while the 380-cst premium was 10 cents higher at $3.30 a tonne above Singapore spot
quotes.
    The swaps market weakened slightly as several players were seen offloading the August
180-cst contract during the trading window. Shell sold 45,000 tonnes, while Vitol and ChinaOil
sold 35,000 tonnes and 20,000 tonnes respectively.
    On the buy side, European trader Total picked up 70,000 tonnes of the August 180-cst
contract.
    The prompt August/September intermonth value, the premium of August fixed-price contract
over the September contract, closed 25 cents lower at a three-session low of $2.88 a tonne,
according to Reuters data.
    The market outlook remained weak as demand from China and Japan was still slow. Even though
inventories decreased due to lower imports this month, Western arbitrage arrivals were expected
to spike in August.
    China’s fuel oil imports in June fell 11 percent from the previous month to around 1.78
million tonnes, official customs figures showed.
    However, some demand was seen from Sri Lanka, with Ceylon Petroleum Corp (Ceypetco) floating
another tender for 35,000 tonnes of low sulphur fuel oil (LSFO) for delivery on August 11,
traders said.
    The refiner bought 20,000 tonnes of LSFO and 20,000 tonnes of high sulphur fuel oil (HSFO)
from Vitol via an earlier tender.
    Ceypetco has been seeking spot cargoes to cover domestic demand for oil products as it shut
its 50,000 barrels per day (bpd) refinery on July 2 for a 35-day planned maintenance.
    So far, Ceypetco has bought 60,000 tonnes of HSFO and 20,000 tonnes of LSFO via spot
tenders.
    
    **Tenders: South Korea’s East-West Power bought 50,000 tonnes of HSFO, for August 11-15
delivery to Ulsan, from Mitsui at a premium of $10.45 a tonne to Singapore spot quotes. The
utility bought another 50,000 tonnes, for August 27-31 delivery to Ulsan, from Daweoo at a
premium of $6.02 a tonne to Singapore spot quotes.
    Sri Lanka’s Ceypetco bought 20,000 tonnes of HSFO and 20,000 tonnes of LSFO, for August 1
delivery to DES Colombo, at a premium of $51.80 and $83.80 a tonne to Singapore spot quotes,
respectively.
    The refiner is also seeking 35,000 tonnes of LSFO, for August 11 delivery, via tender which
closes on July 25, with 72 hours validity.
    Saudi Aramco is offering 80,000 tonnes of 650-cst, for August 3-5 lifting from Yanbu, via
tender with an unspecified closing date.
    It is also offering 80,000 tonnes of 650-cst, for August 11-13 lifting from Yanbu, via
tender which closes on July 24.  
    
    **Cash deals: No trades.
    
 CASH ($/T)             ASIA CLOSE    Change   % Change   Prev      RIC
                                                          Close     
 Cargo – 180cst               626.65   -22.00      -3.39    648.65  FO180-SIN
 Diff – 180cst                  3.75    -0.15      -3.85      3.90  FO180-SIN-DIF
 Cargo – 380cst               614.55   -21.70      -3.41    636.25  FO380-SIN
 Diff – 380cst                  3.30     0.10       3.13      3.20  FO380-SIN-DIF
 Bunker (Ex-wharf)-           622.00   -21.00      -3.27    643.00  BK380-B-SIN
 380cst                                                             
 Bunker (Ex-wharf)              7.45     0.70      10.37      6.75                 
 Premium                                                            
                                                                                   
 SWAPS  ($/T)           ASIA CLOSE    Change   % Change   Prev      RIC
                        (0830 GMT)                        Close     
 Brent M1                     103.06    -3.87      -3.62    106.93              
 180cst M1                    623.00   -22.13      -3.43    645.13                
 180cst M1/M2                   2.88    -0.25      -7.99      3.13                
 180cst M2                    620.13   -21.87      -3.41    642.00                
 Visco M1                      11.75     0.00       0.00     11.75                
 Visco M2                      11.50     0.12       1.05     11.38                
 380cst M1                    611.25   -22.13      -3.49    633.38                
 380cst M1/M2                   2.63    -0.12      -4.36      2.75                
 380cst M2                    608.63   -22.00      -3.49    630.63                
 Cracks 180-Dubai M1           -3.67     0.40      -9.83     -4.07                
 Cracks 180-Dubai M2           -3.93     0.29      -6.87     -4.22                
 East-West M1                  33.88    -0.25      -0.73     34.13             
 East-West M2                  34.63    -0.25      -0.72     34.88             
 Barges M1                    589.13   -21.87      -3.58    611.00               
 Barges M1/M2                   3.63    -0.25      -6.44      3.88                
 Barges M2                    585.50   -21.63      -3.56    607.13               
 Crack Barges-Brent M1        -12.98     0.55      -4.07    -13.53                
 Crack Barges-Brent M2        -12.68     0.57      -4.30    -13.25                
 
    

 (Reporting by Lee Yen Nee; Editing by William Hardy)

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