SINGAPORE: Asia's 380-cst fuel oil cash premiums fell to a near one-week low and closer to parity on Tuesday amid weaker deal values and increasingly aggressive supplier offers.
CASH DIFFS
- 380-cst cash premiums to Singapore quotes fell by 54 cents to 16 cents a tonne on Tuesday.
- Cash premiums were last lower on Wednesday, when they fell to a one-month low of 15 cents a tonne.
- One cargo trade was reported in the Platts window after Mercuria sold 20,000 tonnes of 380-cst fuel oil to Coastal at $289 a tonne, equivalent to a discount of about minus 16 cents a tonne.
- By comparison, Monday's two 380-cst deals were traded at a 70-90 cent premium to Singapore quotes.
- The lowest supplier offers for 380-cst fuel oil on Tuesday were at premiums ranging from 30 cents to 85 cents a tonne, compared with a range of about plus $1.50 to $1.60 a tonne in the previous session.
- 180-cst cash premiums to Singapore quotes fell to 40 cents a tonne, their lowest since June 12.
- Trafigura offered one 180-cst cargo for delivery Aug. 2-6 from the Jubilee Star VLCC -- a floating storage unit -- at parity to Singapore quotes, well below the next lowest offer in the same laycan offered by Total at a premium of 75 cents a tonne.
OTHER
- Vietnam's Nghi Son Refinery and Petrochemical LLC (NSRP) has chartered a supertanker to carry crude from Kuwait in a sign that the behind-schedule project may soon be ready for start-up.
- The world oil market is taking longer than expected to rebalance but the glut should disappear by the end of March and OPEC need not take further action to curb supplies for now, Kuwait's oil minister said.
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