SINGAPORE: The 380-cst front-month time spread widened its backwardated structure on Thursday, pointing to further signs of improving market sentiment that was supported by falling Singapore inventories.
SINGAPORE INVENTORIES
- A surge in export volumes in the week to April 26 dragged Singapore onshore fuel oil inventories 9 percent lower, or 360,000 tonnes, to a three-month low of 3.48 million tonnes, official data showed.
- Net imports during the week fell to their lowest level since Dec. 14 at 385,000 tonnes as imports growth, at 3 percent, was dwarfed by the 171 percent spike in exports, amid soaring shipments to China.
- The decline in fuel oil inventories was the largest, in volume and percentage terms since the week ended Jan. 4.
SWAPS MARKET
- Broker sources said the 380-cst May/June time spread widened in trade on Thursday, rising from a premium of 50 cents a tonne to 65 cents a tonne during Asia intra-day trade.
- By comparison, the 380-cst May/June contract was trading at a premium of about 10 cents a tonne on Monday.
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