SINGAPORE, July 14 (Reuters) - The Asian 180-cst fuel oil
crack edged up by about 5 percent on Monday to hit minus $11.91
a barrel, narrowest discount seen in more than a week as a surge
in cash cargoes in the Singapore market may have provided some
support, traders said.
A total of 260,000 tonnes of 180-cst fuel oil were traded in
the cash market, making this the highest volume transacted in a
single day since Feb. 20, when BP snapped up 300,000 tonnes of
180-cst and 380-cst grades for March lifting from Singapore,
Reuters data showed.
BP was the dominant buyer on Monday, having bought almost 95
percent, or 12 out of 13 cargoes of 180-cst grade sold in the
cash market mostly for August loading, while Glencore was the
prominent seller having sold 11 of the 13 cargoes.
The reasons behind BP"s buying and Glencore"s selling spree
were not clear.
TENDERS: India"s MRPL has offered 80,000 tonnes of 380-cst
fuel oil for Sept. 2-4 loading from New Mangalore in a tender
which will close on July 17. Bids are to stay valid until July
Indian Oil Corp has likely sold a 35,000-tonne 380-cst fuel
oil cargo for late July lifting from Chennai to Socar, but this
could not be confirmed.
Korea East-West Power Co Ltd (EWP) has bought 50,000 tonnes
of high sulphur fuel oil for July 27-31 arrival at Ulsan at a
premium of $25 a tonne to Singapore quotes on a cost-and-freight
SINGAPORE CASH DEALS: Thirteen deals, all for 180-cst grade
at 20,000-tonne per cargo.
BP bought a total of six cargoes for Aug. 3-7 loading from
Singapore at various prices, ranging from parity to a discount
of $0.50 to $2.50 a tonne. Of these, five were from Glencore and
one from Mercuria.
BP had also bought two cargoes for Aug. 1-5 loading from
Singapore, with Glencore and Mercuria to supply a cargo each at
$597.75 a tonne.
Glencore sold two cargoes for Aug. 6-10 to BP at $598.50 a
BP also picked up two more cargoes from Glencore for Aug.
9-13 loading from Singapore at a discount of $1.50 and $2.50 a
Hin Leong bought from Glencore a cargo for July 29 to Aug. 2
loading from Singapore at $597 a tonne.
CASH ($/T) ASIA CLOSE Change % Change Prev RIC
Cargo - 180cst 597.68 -3.88 -0.64 601.56 FO180-SIN
Diff - 180cst -1.50 -0.06 4.17 -1.44 FO180-SIN-DIF
Cargo - 380cst 592.93 -3.54 -0.59 596.47 FO380-SIN
Diff - 380cst 0.67 -0.17 -20.24 0.84 FO380-SIN-DIF
Bunker (Ex-wharf)- 380cst 595.43 -3.57 -0.60 599.00 BK380-B-SIN
Bunker (Ex-wharf) Premium 2.50 -0.03 -1.19 2.53
For a list of derivatives prices, including margins, please
double click the RICs below.
Cracks 180-Dubai M1
Cracks 180-Dubai M2
Crack Barges-Brent M1
Crack Barges-Brent M2
(Reporting by Seng Li Peng, editing by Louise Heavens)
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Asia Fuel Oil-Crack value up;Cash deal vols highest since Feb 20