Asia Fuel Oil: 380-cst cash premium rises 76 percent

marinelink.com
Wednesday, March 12, 2014

The cash premium of the benchmark 380-cst fuel oil grade firmed for the fourth straight session on Wednesday, underpinned by lower supply in the region in early April.

 

The 380-cst cash premium rose 76 percent or close to $1 a tonne to a two-week high of $2.22 a tonne, Reuters data showed. As cash trading begins for early-April loading barrels, tighter supply over
this period has provided some support for the 380-cst market. Around 4.17 million tonnes of fuel oil will arrive in April from the West, of which only an estimated 950,000 tonnes or just 20 percent of the total, will make a landfall in the first 10 days of the month, Reuters reported earlier.
 
On the other hand, demand from southeast Asia is also set to increase, with Vietnam seeking additional fuel oil for April to May delivery to meet the shortfall of residual products lost when its sole Dung Quat refinery undergoes maintenance over May to July. State-owned Bangladesh Petroleum Corp (BPC) plans to import 67 percent more fuel oil in the April-June quarter from the first quarter to feed demand for power generation as summer approaches, Reuters reported earlier.
 

"Demand drivers have improved, with (South Asia's) demand up, and requirements into Vietnam should also improve with Dung Quat in turnaround," said a Singapore-based trader. In other market news, Japan's stocks of low sulphur fuel oil climbed 4.3 percent on week to 0.66 million kilolitres, while its refinery run rate was trimmed by 1.9 percentage points to 82.9 percent, latest data from the Petroleum
Association of Japan showed on Wednesday.

CASH DEALS: One 380-cst trade.

Glencore sold to BP 40,000 tonnes of 380-cst for March 29-April 2 at $597.50 a tonne.
 
TENDER NEWS

Indian Oil Corp (IOC) sold 30,000-35,000 tonnes of 380-cst for March 29-31 loading from Kandla to BP at a discount of $15 a tonne to the IOC formula, 25 percent wider than the February cargo awarded to PetroChina. The Indian refiner separately sold 15,000 tonnes of 380-cst for March 17-19 loading from Haldia to Petronas at a narrower discount of $20-21 a tonne to IOC formula, versus discount of $21-25 a tonne previously for a Feb. 15-17 cargo awarded to PetroSummit. Hindustan Petroleum Corp Ltd sold 25,000-30,000 tonnes of 380-cst for March 26-28 loading from Vizag to Mercuria, at a discount of $20 a tonne to Singapore spot quotes, steady from the refiner's previous sale of a March 1-5 to the same company. The Saudi Aramco-Shell joint venture refinery in Yanbu awarded 80,000 tonnes of fuel oil loading over March 17-21 to Glencore, at an undisclosed price.
    
Reporting by Jane Xie; Editing by Anand Basu

 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

ExxonMobil 1Q Profits Plunge 63%

Highlights   * Earnings of $1.8 billion decreased 63 percent from the first quarter of 2015.   * Earnings per share were $0.43 assuming dilution.   * Cash

Shipping, Key Ingredient of EU’s Africa Agenda

The African economy has become one of the most promising global growth markets. Shipping is taking care of the largest part of international trade and in Africa

Ocean Economy Set to Double in Size by 2030

The world’s oceans must be managed well to ensure the potential of an “ocean economy” that was worth US $ 1.5 trillion in 2010.   "Calculations based on the

Fuels & Lubes

Oil Rally is Not Just About Hedge Funds: Kemp

Oil prices are becoming dangerously overheated as speculators anticipate a rebalancing of supply and demand that has barely started, according to many oil analysts.

Singapore Revokes Two Bunker Licenses

Singapore's Maritime and Port Authority (MPA) have revoked two bunker suppliers' license to operate in the world's top bunker port.    The two companies have,

Norwegian Escape Equipped with Alfa Laval Systems

Norwegian Escape, the first cruise ship in Norwegian Cruise Line’s new Breakway Plus Class, was delivered in October 2015. The 164,600 GT vessel, which boasts 19 decks and 4,

Marine Power

Ocean Economy Set to Double in Size by 2030

The world’s oceans must be managed well to ensure the potential of an “ocean economy” that was worth US $ 1.5 trillion in 2010.   "Calculations based on the

Mercury Marine Expands Manufacturing Capacity

Mercury Marine is adding a 53,000 square foot manufacturing capacity expansion to its global headquarters in Fond du Lac, Wisc. The expansion will consist of 45,

Pacific Nations Take a Stand on Shipping Emissions

On Earth Day, Pacific leaders queued among 175 countries to sign the Paris Agreement in New York. Earlier that day in London, the International Maritime Organization (IMO),

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Pipelines Pod Propulsion Ship Repair Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0677 sec (15 req/sec)