SINGAPORE: Cash premiums for 180-centistoke and 380-cst fuel oil gained on Tuesday though traders expect the increase to be temporary given higher volumes expected from the West.
- HIGHER FLOWS FROM WEST: The total fuel oil flows from the West to Asia is expected to reach nearly 5 million tonnes in June, a Singapore-based trader said. This is in line with trade flows data on Thomson Reuters Eikon which shows that June inflows could reach the highest in four months.
"The higher inflow from the West for this month made the differentials weaker," the trader said, referring to a fall in differentials on Monday. They have recovered on Tuesday.
- HIGHER PRICES UNLIKELY TO REMAIN: The increase in differentials are unlikely to be a trend, a Singapore-based trader said.
"Most traders I spoke to today are not confident prices will stay at current levels, although they are still hoping prices will rise," he said.
"Even so, trading activities are healthy. Sinopec has surprised the market with their trading volumes despite thinner margins."
- BUNKER SALES: Sale of marine fuels in Singapore in May fell to 4.181 million tonnes, down 4.2 percent from the same period last year, the second lowest monthly sale by volumes this year, latest data from the Maritime and Port Authority of Singapore (MPA) showed.
The May volumes were also down 1.7 percent from April, the data showed. The last time monthly sales were lower this year was in February.
- REFINERY FIRE: The Singapore Refinery Company said on Tuesday it has shut a crude distillation unit on Jurong Island for an indefinite period after a fire broke out at the facility.
"The affected unit has been shut down until further notice," a company official said in an e-mail.
SINGAPORE CASH DEALS: Two deals reported.
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