SINGAPORE: Asia's 380-cst fuel oil cash premiums slipped to a near 1-month low on Wednesday amid weaker buying interest, but further falls are seen limited over the near term by bullish supply and demand fundamentals, two traders said.
Following nearly two weeks of uninterrupted gains, sources also said falling crude prices on Wednesday may have kept some traders on the sidelines ahead of EIA data released later in the day.
WINDOW TRADES
- Two cargo trades were reported in the Platts window, including one 20,000 tonne cargo of 180-cst fuel and another 20,000 tonnes of 380-cst fuel oil.
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LOWER ARBS
- Total fuel oil flows into East Asia for June closed at a 4-month high of around 6.8 million tonnes mainly on spillovers from May and despite lower Middle East and intra-Asia supplies, assessments by Thomson Reuters Oil Research showed.
- July arrivals are expected to be lower, with Western arrivals closing at a 12-month low of just over 3 million tonnes, while Middle East inflows are currently at below-average levels of just over 800,000 tonnes so far, the assessments showed.
- Trader sources currently estimate some 3 to 4 million tonnes of fuel oil will arrive into Singapore in July and August each.
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