SINGAPORE: Asia's 380-centistoke (cst) fuel oil cash differential slid to its widest discount since July 2016 on Thursday, as suppliers in the Singapore trading window lured buyers with lower price levels.
Cash discounts for 380-cst fuel oil fell to minus $1.94 a tonne to Singapore quotes, from a discount of $1.20 per tonne in the previous session.
Aggressive offers from suppliers of the 380-cst bunker fuel with some seeking to clear their landed inventories, also weighed on ex-wharf and delivered differentials trade sources said.
380-cst delivered fuel oil deals were heard to have concluded at $372.50 and $374 per tonne, trade sources said.
WINDOW TRADES
- Four cargo trades were reported in the Singapore trading window on Thursday, totalling 80,000 tonnes of 380-cst fuel oil, the highest volume since March 13.
- Trafigura bought three of the cargoes and Gunvor bought one.
- Hin Leong supplied three of the cargoes, each at $369 per tonne, and Glencore sold one at $370 per tonne.
- Hin Leong, the leading buyer of 380-cst cargoes in the Singapore window since January, on Thursday turned into a seller of the fuel for the first time since Nov. 10.
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INVENTORIES
- Singapore weekly onshore fuel oil inventories rose 1.5 percent, or 349,000 barrels (52,000 tonnes), to a fresh 2018 high of 24.22 million barrels (about 3.61 million tonnes) in the week ended March 21, data from International Enterprise (IE) Singapore showed on Thursday.
- This came as weekly net imports of fuel oil into Singapore climbed 75 percent from the week before to a three-week high of 869,000 tonnes.
- Singapore fuel oil imports were at a three-week high of 1.36 million tonnes, while exports were at a five-week low of 495,000 tonnes.
- Compared with year-ago levels, the latest onshore fuel oil inventories were 11 percent lower.
- Singapore's net exports of fuel oil to China topped the week at 198,000 tonnes, followed by Hong Kong with 67,000 tonnes and Bangladesh with 33,000 tonnes.
- The largest net imports into Singapore originated from the Netherlands at 312,000 tonnes, followed by Malaysia at 262,000 tonnes, Iraq at 185,000 tonnes and Russia at 151,000 tonnes.
- Fuel oil imports into Singapore from Venezuela were absent for a fifth consecutive week, the longest absence since January 2017, according to the data, while imports from the Netherlands were at their highest since the week to Jan. 4 last year.
- Fuel oil inventories in Singapore have averaged 22.326 million barrels (3.33 million tonnes) a week since the start of 2018.
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