SINGAPORE: Cash premiums of Asia's 380-cst fuel oil rose for a fourth consecutive session on Monday, lifted by continued buying interest for prompt cargoes and improved market sentiment.
While sentiment has been generally bullish over the past few months due to structurally tighter fuel oil supplies and firm demand, "some players seem to be defending bullish positions and taking whatever cargoes they can," a Singapore-based fuel oil trader said.
Nine cash deals were reported in the Platts window on Monday, the highest since Dec. 1, totalling 180,000 tonnes of 380-cst fuel in addition to 40,000 tonnes of lower viscosity 180-cst fuel oil, industry sources said.
BP was again the lead buyer of 380-cst cargoes, taking six of the seven cargoes traded in the day from suppliers including PetroChina, Lukoil, Koch and Glencore. Coastal bought the seventh cargo from Hin Leong.
Cash deals for 380-cst fuel were concluded at higher premiums of about $3 to $3.25 a tonne to Singapore quotes on Monday, compared to a $2.25 a tonne above Singapore quotes traded on Friday for a similar cargo and about $1.70 to $2 a tonne on Thursday.
Since the start of the year, BP has bought a total of 680,000 tonnes of 380-cst fuel in the window through 32 parcels, data compiled by Reuters showed.
In contrast, cash premiums of less actively traded 180-cst fuel continued to be pressured by aggressive supplier offers and limited buying interest.
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