July 16, 2012 / 12:07 PM / 5 years ago

Asia Fuel Oil-Cash premiums and spreads hold steady

SINGAPORE, July 16 (Reuters) - The Asian fuel oil market was mostly steady on Monday, with
cash premiums and inter-month swaps values holding near levels in the previous session as market
activity was slow.
    No trades were done during the physical trading window. Cash premiums for both
180-centistoke (cst) and 380-cst were valued at $4.00 and $3.15 a tonne above Singapore spot
quotes, down 20 cents and 10 cents, respectively.
    The swaps market was also relatively quiet, with a total of 50,000 tonnes of fixed-price
contracts transacted, compared with 130,000 tonnes in the previous session.
    Inter-month spreads were more actively traded, with at least 180,000 tonnes of the newly
prompt August/September contract changing hands. The contract closed 13 cents lower at $2.63 a
tonne.          
    Softer fundamentals are expected in August as arbitrage inflows are seen to be heavier next
month. Exports from India are likely to be higher too. 
    On the demand end, eyes are on China and Japan, where spot requirements have been
lacklustre.
    Reflecting the weaker outlook, India's Mangalore Refinery and Petrochemicals Ltd 
sold 80,000 tonnes of 380-cst, for Aug. 12-14 loading from New Mangalore, to oil major BP at a
discount of $2.50 a tonne to Singapore spot quotes, on free-on-board (FOB) basis. 
    It previously sold a similar cargo for July 15-17 lifting to Japanese trader Mitsui at a
premium of 25 cents to Singapore spot quotes, FOB. 
    
    **Tenders: India's MRPL sold 80,000 tonnes of 380-cst, for Aug. 12-24 loading from New
Mangalore to BP at a discount of $2.50 a tonne to Singapore spot quotes, FOB.
    India's Bharat Petroleum Corp Ltd sold two 30,000 tonne parcels, for July 20-24
and Aug. 2-6 loading, respectively, from Kochi, to Marubeni at an unspecified price.
 
    
    **Cash deals: No trades
    
 CASH ($/T)             ASIA CLOSE  Change   % Change  Prev Close  RIC
 Cargo - 180cst             614.60     0.45      0.07      614.15  FO180-SIN
 Diff - 180cst                4.00    -0.20     -4.76        4.20  FO180-SIN-DIF
 Cargo - 380cst             602.25     0.85      0.14      601.40  FO380-SIN
 Diff - 380cst                3.15    -0.10     -3.08        3.25  FO380-SIN-DIF
 Bunker (Ex-wharf)-         610.00     2.00      0.33      608.00  BK380-B-SIN
 380cst                                                            
 Bunker (Ex-wharf)            7.75     1.15     17.42        6.60                 
 Premium                                                           
                                                                                  
 SWAPS  ($/T)           ASIA CLOSE  Change   % Change  Prev Close  RIC
                        (0830 GMT)                                 
 Brent M1                   101.33     0.69      0.69      100.64              
 180cst M1                  611.25     2.50      0.41      608.75                
 180cst M1/M2                 2.63    -0.12     -4.36        2.75                
 180cst M2                  608.63     2.63      0.43      606.00                
 Visco M1                    11.50    -0.13     -1.12       11.63                
 Visco M2                    11.38    -0.25     -2.15       11.63                
 380cst M1                  599.75     2.62      0.44      597.13                
 380cst M1/M2                 2.50    -0.25     -9.09        2.75                
 380cst M2                  597.25     2.87      0.48      594.38                
 Cracks 180-Dubai M1         -4.39    -0.18      4.28       -4.21                
 Cracks 180-Dubai M2         -4.41    -0.20      4.75       -4.21                
 East-West M1                35.63    -0.50     -1.38       36.13             
 East-West M2                36.00    -0.13     -0.36       36.13             
 Barges M1                  575.63     3.00      0.52      572.63               
 Barges M1/M2                 3.00     0.25      9.09        2.75                
 Barges M2                  572.63     2.75      0.48      569.88               
 Crack Barges-Brent M1       -4.39     9.03    -67.29      -13.42                
 Crack Barges-Brent M2      -13.23    -0.26      2.00      -12.97                
 
 (Reporting by Lee Yen Nee; Editing by Jane Baird)

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