SINGAPORE: A total of 40,000 tonnes of benchmark 180-cst fuel oil exchanged hands in the Platts window on Tuesday, the highest volume in more than two months after some suppliers lowered price levels, industry sources said.
Vitol lifted two 20,000 cargoes from Mercuria at a premium of about $1.50 a tonne to Singapore quotes in the Platts Market-on-Close (MOC) window, sources said, whereas Hin Leong paid Chevron a premium of $2.25 a tonne for 20,000 tonnes on Friday.
The last time 40,000 tonnes or more of 180-cst fuel traded in the Platts window in a single day was Aug. 3, data compiled by Reuters showed.
The lower transaction price levels weighed on 180-cst fuel premiums, knocking them 31 cents lower on Tuesday to $1.69 a tonne above Singapore quotes.
Traders said the weaker 180-cst fuel oil cash premiums were the result of softer spot demand and a slight increase in replenishment cargoes.
The weaker 180-cst complex was also reflected in prompt month time spreads. The Nov/Dec spread traded 25 cents lower on Tuesday from the previous session at a discount of 25 cents, well below the $1.27 a tonne average premium for September.
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