SINGAPORE: Asia’s high sulphur fuel oil market started the month weakeron Monday as expectations of higher arbitrage inflows into Singapore in September weighed on sentiment.
Fuel oil time spreads, arbitrage spreads and cracks to Brent crude had all climbed to multi-month highs in July and August as inventories of the fuel shrunk as strong demand in the Middle East drew in arbitrage cargoes of the fuel away from Asia.
The emergence of contaminated bunker fuels in Singapore around late-July helped further narrow the availability of finished grade marine fuels in the Singapore bunkering hub.Reflecting expectations of easing supply constraints, fuel oil suppliers accepted lower premiums for physical cargoes of the fuel in the Singapore trading window, dragging premiums to a near two-month low.
The 380-cst fuel oil cash premium slipped to $3.94 a tonne to Singapore quotes on Monday,down from $4.86 per tonne on Friday and its lowest since July 5. <FO380-SIN-DIF> Cash premiums of 180-cst fuel oil slipped to their lowest since June 8 at $2.23 a tonne to Singapore quotes, down from $4.46 a tonne in the previous session. <FO180-SIN-DIF>
– Five cargo trades were reported in the Singapore trading window, totalling 66,000 tonnesof 180-cst high-sulphur fuel oil (HSFO) and 40,000 tonnes of 380-cst HSFO.
Taiwan’s Formosa sold 40,000 tonnes of 380-cst HSFO with a maximum 2.5 percent sulphur content loading from Mailiao on Sept 16-18 to Hin Leong at a discount of about $10 per tonne to Singapore 180-cst quotes on an FOB basis.
India’s Nayara Energy, formerly known as Essar Oil, has offered 37,000 tonnes-39,000 tonnes of vacuum gasoil (VGO) with a maximum 2 percent sulphur content for export from Vadinar over Sept 26-30 in a tender closed on Aug. 31 with same-day validity.
ADNOC STARTS DELAYED COKER
Abu Dhabi National Oil Company (ADNOC) has successfully completed the commissioning of a specialized coker unit as part of its Carbon Black and Coker Project, the state-owned company said on Sunday in a news release on its website.
“With this, ADNOC will extract the maximum value from ‘bottom-of-the-barrel’ heavy oils and slurry,” the company said.
ADNOC’s new unit will allow the company to recover 40,600 tonnes of two different grades of carbon black per year and 430,000 tonnes of calcined coke, the company said.–Reuters