SINGAPORE: Cash differentials for Asia's benchmark 180-cst and the actively traded 380-cst fuel oil grades widened their premiums to Singapore quotes as most suppliers in the Platts window were absent on Wednesday.
Vitol was the only supplier in the window on Wednesday, offering two 20,000 tonne cargoes of the 380-cst fuel oil, industry sources said. There were no offers for the 180-cst fuel oil.
On Tuesday, 40,000 tonnes of the 180-cst fuel were traded in the window which was the highest traded volume in more than two months for the lower viscosity fuel oil in a single session.
By comparison, there were six standing offers for 380-cst fuel on Tuesday and another two offers for the 180-cst fuel.
"Suppliers could be holding back because they might be expecting a rise in flat prices from rising crude," said a Singapore-based trader, adding that the current supply and demand fundamentals were relatively balanced.
The absence of sellers in the window has to some extent pushed eager buyers to raise their bids, which in turn helped lift cash premiums, traders said.
Cash differentials for the 380-cst fuel rose for a third consecutive session, widening their premiums by 60 cents to 64 cents a tonne above Singapore quotes, its widest since Sept. 21.
Similarly, cash premiums for the benchmark 180-cst fuel oil rose 31 cents from the previous session to $1.98 a tonne above Singapore quotes.
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