SINGAPORE: Asia's 180-centistoke fuel oil crack weakened to a discount of 67 cents on Tuesday versus 53 cents the previous session, weighed down by stronger crude and traders' expectations of higher supplies.
- Asia gets some of its supplies from the West, including Europe and South America.
- Russia exported close to 3.3 million tonnes of fuel oil in June, down 5.1 percent from the previous month, official data showed, but overall refinery runs in Europe were expected to be high as refiners were capitalizing on the high refinery margins.
- Taiwan's CPC may have more fuel oil for sale when a secondary unit at its Talin refinery shuts in September as it may not reduce run rates at its crude distillation units (CDUs).
- The 80,000 barrels per day gasoline-making unit uses fuel oil as a feedstock, which comes from processing crude in CDUs.
UNUSUAL TENDERS
- Given the possible higher supplies ahead, traders looked past the unusual demand coming from India.
- Bharat Petroleum Corp Lyd (BPCL) was looking to buy two cargoes of low sulphur fuel oil with a combined volume of 40,000 tonnes for Aug. 20-22 arrival at Kochi through a tender closing on July 25. Offers are to stay valid until July 28.
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