SINGAPORE: The 380-cst prompt-month time spread traded higher on Thursday, narrowing its discounts to its lowest in about two weeks on expectations that ample supplies of the fuel stored offshore Singapore might not flood the market in the near term.
In the physical markets, no cargo trades were reported for a second consecutive session in a reversal of strong buying interest that had dominated the market from March to May.
SWAPS MARKET
- The ICE-traded 380-cst June/July time spread narrowed its discount to about minus 50 cents a tonne, up from minus $1 a tonne in the previous session.
- The prompt-month time spreads was bid up to parity in intra-day trade but quickly gave up some of its gains to minus 50 cents a tonne by 1700 Singapore time (0900 GMT).
INVENTORIES
- Singapore onshore fuel oil inventories were down 0.1 percent, or 4,000 tonnes, to a total of 2.84 million tonnes in the week to May 31, their lowest since early January, official data showed on Thursday.
- Net imports into Singapore were up 1 percent from previous week to 771,000 tonnes as imports, down 13 percent from last week, contracted less than exports which fell 26 percent.
- In the United Arab Emirates, the Fujairah Oil Industry Zone (FOIZ) fuel oil inventories rose to a three week high of 10.084 million barrels in the week to May 29, data via S&P Global Platts showed.
- Fuel oil inventories in the Fujairah hub are up 11 percent, or 987,000 barrels from the previous week.
WINDOW TRADES
- While no trades were reported in the Platts window, willing buyers raised their bids and suppliers lowered their offers when compared to Wednesday's session when no window were reported either.
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TENDERS
- Bakri bought 80,000 to 90,000 tonnes of 650-cst to 700-cst HSFO from Saudi refiner Samref at a $17 a tonne discount to Singapore 380-cst quotes, FOB basis, for loading between June 6-10 at Yanbu.
- India's IOC sold up to 25,000 tonnes of 180-cst HSFO to Gulf Petrochem at a $10-$11 discount to the average of Platts and Argus quotes for 180-cst on an FOB basis for loading on June 13-15 at the port of Kandla.
OTHER NEWS
- The trading arm of oil giant Saudi Aramco is looking to step up hiring for its Singapore office as it pushes into the regional energy hub, three sources with knowledge of the matter said.
- Oil price agency S&P Global Platts has approved Indonesia's Oiltanking Karimun Terminal in its Singapore pricing process for gasoil, jet fuel and gasoline cargoes, the company said in a note to subscribers.
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