SINGAPORE: The 380-cst cash premium rebounded on Thursday, stemming a two-session fall on demand during cash trading despite higher onshore inventories.
The 380-cst cash premium was up 61 cents a tonne, to 77 cents a tonne above Singapore spot quotes, supported by strong buying interest from Hong Kong-listed Brightoil.
The company continued to bid for a 40,000-tonne 380-cst cargo at a premium of 50 cents a tonne after buying its first from China Aviation Oil (CAO).
Onshore fuel oil stocks in Singapore continued to climb for the third straight week to a near eight-month high of 22.37 million barrels (3.52 million tonnes) in the week to March 4, up 1.7 percent, data from IE Singapore showed on Thursday.
Imports increased by over 40 percent to 1.55 million tonnes, led by shipments from the United Arab Emirates, Russia, and Netherlands.
Exports also rose, though by a smaller margin of about 300,000 tonnes on the back of more shipments to South Korea, Japan and Hong Kong.
In tender news, Taiwan's Formosa Petrochemical Corp has sold a cargo of pyrolysis fuel oil at a seven-month-high premium due to firm demand for higher-density and lower-viscosity fuel grades.
FPCC sold 15,000 tonnes of the March 13-15 loading cargo to Swiss trader Mercuria at a premium of around $50 a tonne to Singapore spot 180-centistoke quotes, a source familiar with the matter said.
A Singapore-based trader said the cargo could also have commanded a higher premium for its ultra low-sulphur level of 0.15 percent.
The last time FPCC sold at a higher price was for an August loading cargo at a premium above $80 a tonne to Singapore spot quotes.
Over in South Korea, East-West Power bought two 50,000-tonne cargoes for March arrival into Ulsan from Hanwha and Mercuria at premiums of $11.68 a tonne and $9.38 a tonne to Singapore spot quotes.
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