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Asia Fuel Oil-Hits 39-month peak, dents demand
March 14, 2012 / 12:06 PM / 6 years ago

Asia Fuel Oil-Hits 39-month peak, dents demand

SINGAPORE, March 14 (Reuters) - Asia's fuel oil market
languished on Wednesday, with only moderate activity seen for
the swaps contracts, as the demand outlook remained depressed by
high prices tracking the strong Brent crude benchmark.	
    The March swaps contract rose to $752.13 a tonne by the
Asian close, the highest level for a front-month contract since
July 17, 2008, Reuters data showed.	
    High outright prices encouraged sellers to price spot
cargoes on a flat-price basis instead, with three out of the
four deals transacted on such basis during the trading window.	
    This has also pressured the premiums physical cargoes are
able to fetch, with India's Bharat Petroleum (BPCL) cancelling
its tender for a March 27-29 lifting parcel from Mumbai due to
poor bids, according to industry sources.	
    Taiwan's demand for fuel oil in January eased nearly 10
percent to 89,982 barrels per day, while exports from the
country rose to 141,055 tonnes, government data showed.
 	
    Formosa Petrochemical Corp has only sold its standard
monthly offering of 40,000 tonnes of high-sulphur fuel oil and
15,000 tonnes of pyrolysis fuel oil for March lifting, with no
additional cargoes offered so far.  	
    Bunker demand has also been pretty badly hit, with end-users
taking limited supplies from Asia's largest bunkering port.	
    "Demand volumes are not coming in. On a delivered basis,
Malaysia may be cheaper at the moment," a bunker source said.	
    	
 FUEL OIL                                                                                 
 TENDERS/SPOT                                                                             
 ISSUER          BUY/SELL      GRADE   VOL        LAYCAN            PRICE PER TONNE
                                       ('000T)                      
 BPCL            Sell          380cst  30         March (28-29)     Cancelled
                                                                    
 CASH TRADES                                                                              
 Grade           Seller        Buyer   Vol        Laycan            Price (Transaction)
 180cst          WPI           BP      30KT       March 29-April 2  Balance March +$0.00
 180cst          Gunvor        BP      20KT       April 9-13        $754.50
 180cst          Gunvor        BP      20KT       April 9-13        $754.50
 180cst          PetroChina    BP      20KT       April 3-7         $754.00
  CASH ($/T)                   ASIA CLOSE    Change  % Change   Prev      RIC
                                                               Close     
 Cargo - 180cst               $753.55       $1.90   0.25       $751.65   FO180-SIN
 Diff - 180cst                $1.45         $1.15   383.33     $0.30     FO180-SIN-DIF
 Cargo - 380cst               $741.20       $0.90   0.12       $740.30   FO380-SIN
 Diff - 380cst                $0.30         -$0.08  -20.00     $0.38     FO380-SIN-DIF
 Bunker (Ex-wharf)- 380cst    $743.00       $2.00   0.27       $741.00   BK380-B-SIN
 Bunker (Ex-wharf) Premium    $1.80         $1.10   157.14     $0.70                    
                                                                                        
 SWAPS  ($/T)                 ASIA CLOSE    Change  % Change   Prev      RIC
                              (0830 GMT)                       Close     
 Brent M1                     $125.72       -$0.13  -0.10      $125.85   BRENTSGMc1
 180cst M1                    $752.13       $0.50   0.07       $751.63   FO180SGSWMc1
 180cst M1/M2                 $0.00         -$0.50  -100.00    $0.50     FO180SGSDMc1
 180cst M2                    $752.13       $1.00   0.13       $751.13   FO180SGSWMc2
 Visco M1                     $10.88        -$0.12  -1.09      $11.00    FOVISSGDFMc1
 Visco M2                     $11.63        -$0.12  -1.02      $11.75    FOVISSGDFMc2
 380cst M1                    $741.25       $0.62   0.08       $740.63   FO380SGSWMc1
 380cst M1/M2                 $0.75         -$0.50  -40.00     $1.25     FO380SGSDMc1
 380cst M2                    $740.50       $1.12   0.15       $739.38   FO380SGSWMc2
 Cracks 180-Dubai M1          -$6.56        $0.26   -3.81      -$6.82    FO180SGCKMc1
 Cracks 180-Dubai M2          -$5.73        $0.38   -6.22      -$6.11    FO180SGCKMc2
 East-West M1                 $38.25        $2.75   7.75       $35.50    FOSGEWMc1
 East-West M2                 $37.25        $2.75   7.97       $34.50    FOSGEWMc2
 Barges M1                    $713.88       -$2.25  -0.31      $716.13   HFOFARAAMc1
 Barges M1/M2                 -$1.00        -$0.50  100.00     -$0.50    HFOFARAASMc1
 Barges M2                    $714.88       -$1.75  -0.24      $716.63   HFOFARAAMc2
 Crack Barges-Brent M1        -$15.74       -$0.14  0.90       -$15.60   HFOFARAACMc1
 Crack Barges-Brent M2        -$15.41       $0.03   -0.19      -$15.44   HFOFARAACMc2
 	
 SWAP TRADES                                                       
 Contract              Price range       Vols     Price range      Vols 
                       (Curr)            ('000T)  (Prev)           ('000T)
 180cst April          $752.00-$752.75   120      $749.00-$751.00  75
 180cst March/April    $0.25-$0.75       185      $1.00            5
 180cst April/May      $1.25-$2.00       75       $1.85-$2.00      380
 180cst May/June       $3.25-$3.75       115      $3.75            125
 180cst June/July      $3.50-$4.00       145      $5.00            50
 180cst Q2/Q3          $11.00-$11.50     60       NIL              
 180cst Q3/Q4          $11.75-$12.00     60       NIL              
 380cst April          $740.25-$741.00   35       $739.00-$739.50  10
 380cst March/April    $0.50-$0.75       10       NIL              
 April viscosity       $11.75            10       NIL              
 May viscosity         $11.50            20       $11.50-$11.75    10
 	
 (Reporting by Jasmin Choo and Lee Yen Nee, editing by William
Hardy)

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