Asia Fuel Oil Dragged Down by Crude Drop
Asia's fuel oil prices continued their downward trend towards new seven-year lows and at levels not seen since early 2005 amid a growing global oil glut that saw benchmark crude prices extend their losses for the 7th session and nearing their eleven-year trough.
The contango curve for the more actively traded 380-cst fuel widened while its differentials deteriorated after Monday trading. Conversely, the contango curve for the 180-cst fuel oil narrowed and its differentials improved.
"Seems like the downside is getting limited," said one Singapore-based trader. Bunker sales rose markedly for the month of November in Singapore, data from the Maritime and Port Authority of Singapore (MPA) showed, posting more than 12 percent increase from last year's figures and mirroring the almost 9 percent rise in number of vessel arrivals for refuelling at the world's busiest bunkering port.
SINGAPORE CASH DEALS: Three deals reported
- Glencore sold 40,000 tonnes of 380-cst high-sulphur fuel oil to Shell for Jan. 8-12 loading at a premium of $0.25 per tonne to average quotes for the second half of December.
- Glencore sold 20,000 tonnes of 380-cst high-sulphur fuel to Hin Leong for Jan. 9-13 loading at a discount of $2 per tonne to average Singapore quotes for January.
- Mercuria sold 40,000 tonnes of 380-cst high-sulphur fuel oil for Dec. 29 to Jan. 2 loading to Brightoil at a discount of $0.5 a tonne to Singapore quotes.