SINGAPORE: Fuel oil's prompt October/November timespread fell to its lowest in nearly seven months on Monday on the back of weak physical demand, ample supply and expectations for heavy arbitrage volumes in October.
Reflecting expectations for the high October western inflow, fuel oil's East-West (EW) spread, the differential between European and Asian prices, fell to almost a two-month low, according to Reuters data.
Asia expects to receive around 5.2 million tonnes of western fuel oil in October, up 600,000 tonnes from September's 4.6 million tonnes.
Meanwhile, gasoil timespreads were largely steady in early Monday trade. The prompt October regrade spread, the differential between jet and gasoil prices, stood at a near four-week high on the back of robust demand for jet fuel from the United States.
Fixed-price swaps for all products were lower. at 0430 GMT, front-month Brent futures had dropped 51 cents to $111.65 per barrel from Friday's Asia close.
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