SINGAPORE, May 22 (Reuters) - Asia fuel oil cash premiums remained sluggish
on Wednesday on oversupply, but there was growing consensus among traders that
arbitrage flows in the backend of June would be thin, providing a floor for
prices.
Asia cash premiums for the 380-centistoke (cst) benchmark for the marine
fuels market were pegged at 25 cents a tonne, steady to levels seen in the
previous session, while the timespread widened 12.5 cents to 75 cents a tonne.
"You should see the spreads widening to reflect the change in sentiment
towards the end of June, flows from the West look tight," a trader said.
Traders estimate around 3.5 million tonnes of Western fuel oil will land in
Asia in June, of which just under 500,000 tonnes is expected to arrive in the
second-half of June.
Current estimates for July to date is just around 3 million tonnes with the
window to book loadings from Europe and the Caribbean set to close in about 5
days.
* Deals: No trades
FUEL OIL
CASH ($/T) ASIA CLOSE Change % Change Prev Close
Cargo - 180cst 608.48 -2.91 -0.48 611.39
Diff - 180cst 0.25 0.00 0.00 0.25
Cargo - 380cst 598.76 -3.65 -0.61 602.41
Diff - 380cst 0.22 -0.14 -38.89 0.36
Bunker 603.50 -4.00 -0.66 607.50
(Ex-wharf)-
380cst
Bunker (Ex-wharf) 4.74 -0.35 -6.88 5.09
Premium
SWAPS ($/T) ASIA CLOSE Change % Change Prev Close
(0830 GMT)
Brent M1 103.19 -1.20 -1.15 104.39
180cst M1 608.13 -2.87 -0.47 611.00
180cst M1/M2 2.13 0.75 54.35 1.38
180cst M2 606.00 -3.63 -0.60 609.63
Visco M1 9.63 0.63 7.00 9.00
Visco M2 8.25 0.00 0.00 8.25
380cst M1 598.50 -3.50 -0.58 602.00
380cst M1/M2 0.75 0.12 19.05 0.63
380cst M2 597.75 -3.63 -0.60 601.38
Cracks 180-Dubai -6.57 0.79 -10.73 -7.36
M1
Cracks 180-Dubai -6.55 0.57 -8.01 -7.12
M2
East-West M1 29.75 1.50 5.31 28.25
East-West M2 30.50 1.50 5.17 29.00
Barges M1 578.38 -4.37 -0.75 582.75
Barges M1/M2 2.88 0.75 35.21 2.13
Barges M2 575.50 -5.13 -0.88 580.63
Crack -14.65 0.41 -2.72 -15.06
Barges-Brent M1
Crack -14.78 0.37 -2.44 -15.15
Barges-Brent M2
(Reporting by Luke Pachymuthu; editing by James Jukwey)
