SINGAPORE, March 18 (Reuters) - Asia's fuel oil viscosity spreads narrowed on Monday, prompted by heavy buying of the 380-centistoke (cst) fuel oil during the physical trading window. The front-month April viscosity narrowed by $2.00 to $9.75 a tonne by the Asian close, Reuters data showed. Viscosity is the difference between the outright prices of 180-cst and 380-cst fuel oil, and acts as an indication of the blendstock balance in the market. Oil major BP picked up 200,000 tonnes of 380-cst fuel oil, while PetroChina bought 60,000 tonnes of the higher viscosity grade. BP also sold 60,000 tonnes of 180-cst, while PetroChina offloaded one 20,000-tonne cargo of the lower viscosity fuel oil.
Fundamentals point to an easing market next month, as Western arbitrage inflows in April are expected to be higher than March at around 4.7 million tonnes. Demand for straight-run fuel oil by teapot refiners in China has also slowed due to weak margins of gasoline and diesel. By the Asian close, the prompt April/May intermonth swaps inched up 13 cents to a backwardation of $2.63 a tonne, according to Reuters data.
* CASH DEALS: 4 180-cst and 12 380-cst trades
- BP bought 40,000 tonnes of 380-cst, for April 2-6, from Shell at $622.50 a
tonne.
- BP bought 20,000 tonnes of 380-cst, for April 13-17, from Glencore at a
premium of $3.00 a tonne to Singapore spot quotes.
- BP bought 20,000 tonnes of 380-cst, for April 10-14, from Glencore at a
premium of $3.00 a tonne to Singapore spot quotes.
- BP bought 20,000 tonnes of 380-cst, for April 13-17, from Glencore at a
premium of $3.00 a tonne to Singapore spot quotes.
- Vitol bought 20,000 tonnes of 180-cst, for April 9-13, from BP at $639.50
a tonne.
- BP bought 40,000 tonnes of 380-cst, for April 9-13, from Mitsui at a
premium of $3.00 a tonne to Singapore spot quotes.
- Vitol bought 20,000 tonnes of 180-cst, for April 4-8, from BP at $640.50 a
tonne.
- Mitsui sold 20,000 tonnes of 380-cst, for April 13-17, to BP at a premium
of $2.75 a tonne to Singapore spot quotes.
- Vitol sold 20,000 tonnes of 380-cst, for April 2-6 loading, to BP at a
premium of $2.75 a tonne to Singapore spot quotes.
- PetroChina bought 20,000 tonnes of 380-cst, for April 5-9 loading, from
Gunvor at a premium of $3.50 a tonne to April Average quotes.
- BP bought 20,000 tonnes of 380-cst, for April 2-6, from Vitol a premium of
$2.75 a tonne to Singapore spot quotes.
- PetroChina bought 20,000 tonnes of 380-cst, for April 5-9, from Gunvor at
a premium of $3.50 a tonne to April Average quotes.
- Vitol bought 20,000 tonnes of 180-cst, for April 9-13, from BP at $639.50
a tonne.
- PetroChina sold 20,000 tonnes of 180-cst, for April 2-6 loading, to Shell
at $641.00 a tonne.
- PetroChina bought 20,000 tonnes of 380-cst, for April 5-9, from Gunvor at
a premium of $3.50 a tonne to April Average quotes.
- PetroChina bought 20,000 tonnes of 380-cst, for April 5-9, from Gunvor at
a premium of $3.50 a tonne to April Average quotes.
CASH ($/T) ASIA CLOSE Change % Change Prev RIC
Close
Cargo - 180cst 640.00 -4.65 -0.72 644.65
