Asia Fuel Oil-Cash premiums retreat, backwardation eases on ample supply

SINGAPORE, Aug 16 (Reuters) - Asia's fuel oil cash premiums retreated on Tuesday as market backwardation eased for both high sulphur fuel oil (HSFO) and very low sulphur fuel oil (VLSFO) amid an ample supply pool. The 180-cst HSFO cash differential dipped by $1.30 to $3.88 per tonne over Singapore quotes, while the 380-cst HSFO cash differential fell by $1.00 to $15.11 per tonne. This comes despite active spot trading momentum on Tuesday, with two 180-cst HSFO cargoes and six 380-cst HSFO cargoes exchanging hands. Meanwhile, the VLSFO market continued to hold steady on thin trade, while its front-month timespread also eased in backwardation. The cash differential for VLSFO inched 19 cents lower to a premium of $16.39 per tonne over Singapore quotes on Tuesday. OTHER NEWS - Oil prices fell on Tuesday as bleak economic data from top crude buyer China renewed fears of a global recession. - Indonesia is reviewing a potential hike in the price of subisidised fuels, the energy minister said on Tuesday, as the government faces a ballooning energy subsidy bill. - Gasoil sales by Indian state fuel retailers in the first half of August were subdued from levels seen in the prior month, as monsoon rains hit mobility and construction work, preliminary sales data showed, while gasoline sales recovered marginally. - Japan's biggest power generator JERA said on Tuesday it will spend about 15 billion yen ($112 million) to buy a 35.1% stake in Vietnamese renewable energy company Gia Lai Electricity JSC (GEC) to expand its overseas business. WINDOW TRADES - 180-cst HSFO: Two trades - 380-cst HSFO: Six trades - 0.5% VLSFO: No trade ASSESSMENTS FUEL OIL CASH ($/T) ASIA CLOSE CHANGE PREV CLOSE RIC Cargo - 0.5% VLSFO 686.21 -24.63 710.84 Diff - 0.5% VLSFO 16.20 -0.19 16.39 Cargo - 180cst 491.81 -29.58 521.39 Diff - 180cst 3.88 -1.30 5.18 Cargo - 380cst 480.40 -29.92 510.32 Diff - 380cst 15.11 -1.00 16.11 Bunker (Ex-wharf) Premium - 380cst 15.35 2.57 12.78 Bunker (Ex-wharf) Premium - 0.5% VLSFO 33.00 -3.00 36.00 For a list of derivatives prices, including margins, please double click the RICs below. Brent M1 180cst M1 180cst M1/M2 180cst M2 Visco M1 Visco M2 380cst M1 380cst M1/M2 380cst M2 Cracks 180-Dubai M1 Cracks 180-Dubai M2 East-West M1 East-West M2 Barges M1 Barges M1/M2 Barges M2 Crack Barges-Brent M1 Crack Barges-Brent M2 (Reporting by Jeslyn Lerh; Editing by Krishna Chandra Eluri)