RTRS:Asia Fuel Oil-Premiums improve, supplies still heavy
SINGAPORE, March 15 (Reuters) - Asia's fuel oil spot premiums improved on Thursday, with differentials for both
180-centistoke (cst) and 380-cst grades edging up as outright prices eased on slightly lower crude.
A total of nine physical deals were done during the trading window. Despite the lower price levels, sellers continued to
price cargoes on a flat-price basis, still drawing profit as those supplies were purchased when prices were lower.
The market remained amply supplied, with Singapore fuel oil stocks peaking at an 11-month high of 21.913 million barrels
for the week ended March 14, data from International Enterprise showed.
Imports from Western countries were close to 822,000 tonnes, more than doubling from last week's 400,000 tonnes and
bringing March arrival total volume to 1.222 million tonnes so far.
However, available supplies from Europe may tighten ahead. Russian fuel oil exports may be affected by the expected
increase in fuel oil export duty to 90 percent of the fee on crude oil, from the current 66 percent, starting in April or May.
Western arbitrage volumes scheduled to land in Asia for April stood at 2.4-2.5 million tonnes, with oil major BP
provisionally booking the ship Pluto Glory to move 260,000 tonnes.
Europe may also find its low-sulphur fuel oil (LSFO) supplies drawn on as demand from the United States is expected to
rise.
Marine bunkers must meet a 1 percent sulphur limit come August 2012, under the International Maritime Organization's North
American Emission Control Area (ECA). This comes at a time when U.S. LSFO production and stocks have reached multi-year lows,
J.P. Morgan said in a note on Wednesday.
Over in the Middle East, Kuwait Petroleum sold 80,000 tonnes of 380-cst, for March 24-25 loading, to Bakri at an
undisclosed price. The refiner had also previously sold a March 12-13 lifting lot to Vitol.
TENDERS/SPOT
ISSUER AWARDEE BUY/SELL GRADE VOL ('000T) LAYCAN PRICE
Korea/WP Buy HSFO 30 April 18-22 March 22
(Pyong Taek)
Kuwait Petroleum Corp Bakri 380cst 80 March 24-25 unknown
(Kuwait)
Kuwait Petroleum Corp Vitol 380cst 80 March 12-13 unknown
(Kuwait)
CASH TRADES
Grade Seller Buyer Vol Laycan Price
(Transaction)
380cst Conoco Brightoil 20KT April 6-10 MOPS +$0.00
380cst Kuo Oil Brightoil 20KT April 10-14 $736.00
380cst Conoco Brightoil 20KT April 10-14 MOPS +$1.00
180cst Gunvor BP 20KT March 30-April 3 $749.00
180cst Gunvor BP 20KT March 30-April 3 $749.00
180cst Gunvor BP 20KT March 30-April 3 $749.00
180cst Gunvor BP 20KT April 10-14 $749.50
180cst Gunvor BP 20KT April 10-14 $749.50
180cst PetroChina BP 20KT April 10-14 $749.50
