SINGAPORE: Asia's 380-cst cash differential rebounded on Tuesday from a one-year low touched in the previous session, as buying interest for physical cargoes of the fuel returned to the Singapore trading window.
While buyers of 380-cst cargoes returned to the trading window on Tuesday with 12 bids against 13 offers for cargoes of the fuel, no cash deals were reported. On Monday, there were no standing bids for 380-cst cargoes versus 13 offers.
Cash discounts of 380-cst fuel oil narrowed to minus 55 cents a tonne to Singapore quotes on Tuesday, up from a discount of $1.17 a tonne on Monday.
Ample supplies and aggressive supplier offers have weighed on market sentiment in recent weeks, but some industry participants expect improving demand fundamentals in April as well as tightening supplies stemming from scheduled refinery maintenance to support Asia's fuel oil market in the near to medium term.
Western fuel oil arbitrage flows into Singapore are expected at about 4.5 million to 5 million tonnes in March and about 5 million tonnes in April, market sources said.
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