Singapore oil product swaps prices edged up in late trade on Tuesday, paring losses as benchmark crude staged a slight recovery from a sharp loss a day earlier, traders said.
Trade was thin throughout the day as market players were cautious, brokers said.
July fuel oil paper was pegged at $183/$184 a tonne, up $1 from early losses but leaving the market $1 a tonne below Monday levels on pressure from slack prompt demand from China and market supply remaining near five-year highs, brokers said.
"These late fuel oil gains are strictly led by crude," a Singapore residual fuels trader said.
NYMEX July light crude futures last stood up 22 cents at $37.85 a barrel at 0857 GMT, paring Monday's sharp loss of $1.12 a barrel.
As crude started a comeback, July fuel oil's lost ground relative to its regional crude benchmark.
July fuel oil's sank to a discount of $4.80 to a barrel of Dubai, down 10 cents from early values of minus $4.65. The product's August discount to Dubai deepened 10 cents to $4.85.
Brokers marked July gas oil bids at $40.80 a barrel against no offers. This was up 10 cents from early trade but left prompt values about 65 cents below Monday levels.
July gas oil prices remained five-to-10 cents a barrel below August values, and the July premium to Dubai crude slid 15 cents to $4.90 a barrel, brokers said.
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