Asia Fuel Oil-Widens further, Nov/Dec at over 2-year low

Wed Nov 7, 2012 5:12pm IST

Stocks

   
Rajalakshmi (C), 28, smiles after winning the Miss Wheelchair India beauty pageant in Mumbai November 26, 2014. REUTERS/Danish Siddiqui

Miss Wheelchair India

Seven women from across India participated in the country's second wheelchair beauty pageant, which aims to open doors for the wheelchair-bound in modelling, film and television, according to organisers  Slideshow 

SINGAPORE, Nov 7 (Reuters) - Asia's inter-month fuel oil spread reached its
widest contango in two years on Wednesday as more supplies were expected to come
into the market soon and concerns about weak demand persisted.
    The balance November/December contract widened 38 cents to a contango of
$3.88 a tonne by the Asian close, the widest contango since Oct. 8, 2010,
according to Reuters data.
    Taiwan's Formosa Petrochemical Corp issued a tender to sell 40,000
tonnes of high sulphur fuel oil (HSFO) and 10,000 tonnes of pyrolysis fuel oil
(PFO) for late-November loading. The tender closes on Nov. 9, with bids to
remain valid on the same day.
    Indian Oil Corp is also set to award a 15,000 tonne cargo of
180-centistoke (cst) fuel oil by the end of the day.
    China's biggest operator of teapot refineries, ChemChina, is set to win an
annual crude import quota of 10 million tonnes starting from 2013, according to
industry sources. 
    ChemChina operates five teapot refineries, and they will be the first such
refiners to have legal access to crude imports, a market currently dominated by
the two major refineries, Sinopec and PetroChina. A JP Morgan note said this
could increase China's exports of light products, while suppressing its fuel oil
imports.  
    "Should ChemChina choose to substitute crude for fuel oil as feedstock,
China's fuel oil imports may remain low. China's fuel oil imports averaged 370
kbd in 3Q 2012 versus about 500 kbd in 1H 2012, contributing to recent weakness
in fuel oil cracks," the note said.
    Fuel oil's prompt December crack hit a fresh one-week low on Wednesday,
widening by 17 cents to a discount of $10.24 a barrel to Dubai crude, Reuters
assessment showed.
    In Japan, stocks of low sulphur C-type fuel oil in the week to Nov. 3 fell
by 2.6 percent from the previous week to 0.86 million kilolitres, data by the
Petroleum Association of Japan (PAJ) showed.  
    High sulphur C-type fuel oil inventories also fell during the week to 1.56
million kilolitres, down 1.3 percent week-on-week, according to the data.   
    
    * TENDERS:
    - Indian Oil Corp is offering 15,000 tonnes of 180-cst for Nov. 26-28
lifting from Haldia via a tender closing on Nov. 7. 
    - Taiwan's Formosa Petrochemical Corp is offering 40,000 tonnes of HSFO and
10,000 tonnes of PFO for Nov. 21-23 lifting from Mailiao via a tender that
closes on Nov. 9, with a same-day validity.
    - Saudi's ExxonMobil is offering 80,000 tonnes of 650-cst for Nov. 29-Dec. 2
lifting from Yanbu via a tender that closes on Nov. 8. 
         
    * CASH DEALS: No deals reported
    
 CASH ($/T)              ASIA CLOSE  Change  % Change  Prev     RIC
                                                       Close    
 Cargo - 180cst              621.70   18.30      3.03   603.40  FO180-SIN
 Diff - 180cst                -3.90   -0.20      5.41    -3.70  FO180-SIN-DIF
 Cargo - 380cst              611.75   17.30      2.91   594.45  FO380-SIN
 Diff - 380cst                -3.35   -0.45     15.52    -2.90  FO380-SIN-DIF
 Bunker (Ex-wharf)-          615.00   18.00      3.02   597.00  BK380-B-SIN
 380cst                                                         
 Bunker (Ex-wharf)             3.25    0.70     27.45     2.55                  
 Premium                                                        
                                                                                
 SWAPS  ($/T)            ASIA CLOSE  Change  % Change  Prev     RIC
                         (0830 GMT)                    Close    
 Brent M1                    110.52    3.17      2.95   107.35              
 180cst M1                   624.00   18.25      3.01   605.75                
 180cst M1/M2                 -3.88   -0.38     10.86    -3.50                
 180cst M2                   627.88   18.63      3.06   609.25                
 Visco M1                     10.00    1.12     12.61     8.88                
 Visco M2                     11.25    0.25      2.27    11.00                
 380cst M1                   614.00   17.12      2.87   596.88                
 380cst M1/M2                 -2.63   -1.25     90.58    -1.38                
 380cst M2                   616.63   18.38      3.07   598.25                
 Cracks 180-Dubai M1         -10.24   -0.17      1.69   -10.07                
 Cracks 180-Dubai M2          -9.13   -0.18      2.01    -8.95                
 East-West M1                 32.00   -1.00     -3.03    33.00             
 East-West M2                 35.38    0.88      2.55    34.50             
 Barges M1                   592.00   19.25      3.36   572.75               
 Barges M1/M2                 -0.50    1.50    -75.00    -2.00                
 Barges M2                   592.50   17.75      3.09   574.75               
 Crack Barges-Brent M1       -19.37   -0.44      2.32   -18.93                
 Crack Barges-Brent M2       -17.90   -0.18      1.02   -17.72                
 
 (Reporting by Lee Yen Nee; editing by Jane Baird)

SAARC Summit

REUTERS SHOWCASE

E-Commerce Boom

E-Commerce Boom

Online grocers come up trumps in India's e-commerce boom   Full Article 

Reuters Poll

Reuters Poll

GDP growth to slow to 5.1 pct, but no rate cut yet  Full Article 

Oil Prices Fall

Oil Prices Fall

Oil at four-year low as OPEC production cut looks unlikely  Full Article 

Hughes Dies

Hughes Dies

Australia batsman Hughes passes away aged 25  Full Article 

Jamini Roy

Jamini Roy

Photo Gallery – Bengali household name Jamini Roy’s paintings  Full Article 

Google in Europe

Google in Europe

Insight - Behind Google's Europe woes, American accents  Full Article 

India-focused Funds

India-focused Funds

India-focused hedge funds up over 40 pct YTD - HFR  Full Article 

Trade Deal

Trade Deal

WTO postpones trade deal by a day after last-minute objection.  Full Article 

Land Disputes

Land Disputes

Disputes over land for industry on the rise in India, angering locals - charities  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage