SINGAPORE, May 23 (Reuters) - Asia fuel oil cash premiums rose on Thursday,
as traders turned their attention to tighter Western arbitrage flows in the
second half of June, which are expected to keep the market supported, at least
in the medium term.
Asia cash premiums for the 380-centistoke (cst) benchmark for the marine
fuels market was valued at 69 cents a tonne, up 44 cents from the previous
session, while the 180-cst differential rose 19 cents to 41 cents.
Reflecting medium-term concerns over supply tightness, the Asia June/July
intermonth premium for 180-cst widened 87.5 cents, while 380-cst firmed 12.5
cents.
Traders have been concerned over thin Western arbitrage volumes arriving in
Asia in June. At the moment, traders estimate this around 3.5 million tonnes,
with the bulk arriving in the first half of June, while the backend of the month
is expected to see between 200,000 and 300,000 tonnes.
"We're also a little concerned about July, although it's still a little far
out, but for European cargoes we should be almost done for booking, which leaves
just arrivals from the Mediterranean," a trader said. Traders estimate July
arrivals to be around 3 million to 3.5 million tonnes.
* Deals: Two trades
- Glencore sells 20,000 tonnes of 380-cst to Singapore trader Hin Leong at
$592.50 a tonne. Loading is scheduled for June 12-16.
- Lukoil sold 20,000 tonnes of 180-cst to Glencore at a premium of $1.50 a
tonne. Loading has been scheduled for June 18-22.
FUEL OIL
CASH ($/T) ASIA CLOSE Change % Change Prev Close
Cargo - 180cst 602.49 -5.99 -0.98 608.48
Diff - 180cst 0.69 0.44 176.00 0.25
Cargo - 380cst 592.17 -6.59 -1.10 598.76
Diff - 380cst 0.41 0.19 86.36 0.22
Bunker 595.50 -8.00 -1.33 603.50
(Ex-wharf)-
380cst
Bunker (Ex-wharf) 3.33 -1.41 -29.75 4.74
Premium
SWAPS ($/T) ASIA CLOSE Change % Prev Close
(0830 GMT)
Brent M1 101.38 -1.81 -1.75 103.19
180cst M1 601.75 -6.38 -1.05 608.13
180cst M1/M2 3.00 0.87 40.85 2.13
180cst M2 598.75 -7.25 -1.20 606.00
Visco M1 10.00 0.37 3.84 9.63
Visco M2 7.88 -0.37 -4.48 8.25
380cst M1 591.75 -6.75 -1.13 598.50
380cst M1/M2 0.88 0.13 17.33 0.75
380cst M2 590.88 -6.87 -1.15 597.75
Cracks 180-Dubai -5.88 0.69 -10.50 -6.57
M1
Cracks 180-Dubai -5.95 0.60 -9.16 -6.55
M2
East-West M1 31.25 1.50 5.04 29.75
East-West M2 30.75 0.25 0.82 30.50
Barges M1 570.50 -7.88 -1.36 578.38
Barges M1/M2 2.50 -0.38 -13.19 2.88
Barges M2 568.00 -7.50 -1.30 575.50
Crack -13.99 0.66 -4.51 -14.65
Barges-Brent M1
Crack -14.11 0.67 -4.53 -14.78
Barges-Brent M2
(Reporting by Luke Pachymuthu; Editing by Clarence Fernandez)
