SINGAPORE: The second-month East-West (EW) arbitrage spread was trading at a near two-year high on Wednesday as expectations of tightening fuel oil supplies in Asia continued to feed bullish sentiment, but arbitrage opportunities from West of the Suez to Singapore were limited by strong backwardation in the fuel oil market, trade sources said.
The 380-cst fuel oil November arbitrage spread was at $23.75 a tonne, up from about $23 a tonne in the previous session and its highest since December 2016.
Meanwhile, fuel oil inventories in the Fujairah oil hub sank to a near seven-month low this week, official data showed on Wednesday.
Comments
Comments are closed.