Asia's fuel oil markets were little changed on Wednesday as traders said they were focusing their attention on August.
"We are just standing on the sidelines," said a Singapore-based trader.
The 380-cst fuel oil time spreads were steady on the Intercontinental Exchange (ICE) at Singapore market close, with the Aug/Sept spreads at a contango of $1.50 a tonne to Singapore quotes, while the Sept/Oct spreads narrowed their contango by 10 cents from
yesterday to 90 cents a tonne, industry sources said.
In the physical markets, two cash deals were reported in the Platts window totalling 60,000 tonnes of 380-cst fuel oil, source said.
Glencore was the seller of both cargoes, selling one 40,000 tonne cargo to SK Energy for Aug 18-22 delivery, and another 20,000 tonnes to Vitol scheduled for Aug 11-15, traders said.
"Glencore has recently been more actively selling 380-cst (fuel oil) in the (Platts) window for the past few months, they've mostly been buying 380-cst or selling 180-cst," said a second Singapore-based trader.
Cash discounts of the 380-cst fuel oil were also steady settling at $1.91 a tonne to Singapore quotes, just 5 cents lower from the previous session.
TENDERS & AWARDS:
- State-owned Indian Oil Corporation (IOC) has sold 15,000 tonnes of 180-cst fuel oil to Glencore at a discount of $16 a tonne to Singapore 180-cst quotes for loading between Aug 10 and 12 from the port of Haldia, industry sources said.
IOC issued another tender offering 15,000 tonnes of 180-cst fuel oil for delivery between Aug 25-27 from the port of Haldia, sources said.
The tender closes on July 27.
- Oil prices fell close to three-month lows on Wednesday after U.S. industry data showed weekly oil stocks declined by less than expected, feeding into concerns over persistent oversupply.
- Norway's Statoil cut its 2016 capital spending guidance as it posted earnings well below forecasts on Wednesday, hit by persistently low crude prices, higher costs at home and abroad, and weaker refinery margins, sending its shares lower.
Source: Hellenic Shipping News