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SINGAPORE: Cash discounts of Asian 380cst fuel oil slipped at the start of the week despite steady activity in the physical market, traders said.
The 380cst fuel oil cash discounts widened to minus 28 cents a tonne to Singapore quotes on Monday, down 26 cents from Friday's close at 2 cents below Singapore quotes.
Four cash deals were reported, totalling 100,000 tonnes of 380cst fuel oil for delivery across Monday's pricing window between April 26 and May 11, with prices ranging between a discount of minus 50 cents and flat to Singapore quotes, industry sources said.
In swaps, while the April-May spreads contracts for 380cst fuel oil narrowed to a contango of only 5 cents a tonne to Singapore quotes from Friday's 25 cents a tonne, trading activity in the contracts was lower as April contracts approach their rollover date in the middle of the month and open interest dwindled, traders said.
By contrast, the contango structure in May-June contracts widened in late afternoon on the Intercontinental Exchange to about minus $2 a tonne to Singapore quotes, industry sources said.
Although the East-West arbitrage window remains firmly shut, industry sources said they did not yet see signs of tightening market supplies after heavy inflows throughout the past two months.
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