SINGAPORE: Values of near-dated 380-cst fuel oil flat price swaps traded on the Intercontinental Exchange (ICE) were higher on Tuesday amid hedging activity by buyers of the fuel who were looking to take advantage of the dip in prices in the previous session caused by declines in crude oil prices, fuel oil brokers and traders said.
Flat price swaps for the 380-cst fuel for the first three months of the new year were 40 cents to 50 cents higher by 1730 Singapore time (0930 GMT) amid active trading on ICE, the sources said.
Meanwhile, traders said premiums of the Dec/Jan time spreads for the 380-cst fuel eased due to a lack of buying interest for the contracts which expire in two days.
In the physical markets, cash premiums held steady despite muted trading activity in the Platts window on Tuesday.
Two cash deals were reported in the window, totalling 40,000 tonnes of 180-cst fuel oil and another 20,000-tonne cargo of 380-cst grade.
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