Cash premiums for fuel oil were rangebound in single-digit premiums in Asia, though a rare trade for 180-cst high sulphur fuel oil (HSFO) emerged on Tuesday.
PetroChina sold 20,000 metric tons of 180-cst HSFO to Trafigura on Tuesday, for loading between Jan. 31 and Feb 4. O/AS
Meanwhile, some spot trading continued to emerge for the other flagship fuel oil grades.
Singapore’s cash premium for 0.5% very low sulphur fuel oil eased further to $2.50 a ton on Tuesday, while front-month cracks held little changed at premiums of $11 a barrel.
Cash premium for 380-cst HSFO FO380-SIN-DIF fell to $5 a ton, though cracks rebounded to discounts of about $10 a barrel.
In tenders, India’s HPCL offered three cargoes of HSFO for loading in end-January and February, while Reliance offered carbon black feedstock for early-February. Both tenders close on Tuesday.
OTHER NEWS
– Oil prices steadied on Tuesday after sliding in the previous session, as markets weighed Middle East tensions against demand worries and rising OPEC supply. O/R
– China’s exports grew for the first time in seven months in November, suggesting factories in the world’s second-largest economy are attracting buyers through discount pricing to get over a prolonged slump in demand.
– Two Indian state refiners are seeking to boost imports of Saudi crude oil after the kingdom cut the official selling price of its key export grade for February to the lowest in 27 months, company sources said.
– Nigeria’s Dangote oil refinery could begin test runs as early as this week after receiving a sixth crude cargo on Monday, company officials said, bringing the 650,000 barrels per day plant to life after years of construction delays.
WINDOW TRADES O/AS
– 180-cst HSFO: One trade
– 380-cst HSFO: One trade
– 0.5% VLSFO: Three trades
Source: Reuters reported by Jeslyn Lerh and edited by Shounak Dasgupta
