Asia/Pacific News
Singapore: Glencore on Fuel Oil Buying Spree
Glencore Plc (Glencore) has reportedly bought more than 1 million metric tonnes of fuel oil in Singapore this month, Bloomberg reports.
So far in June the company is said to have purchased at least 925,000 tonnes of 380 cSt fuel oil and 140,000 tonnes of the 180 cSt as part of Platts' market-on-close price assessment process, a total which accounts for about 36 percent of the total transacted volume of 2.95 million tonnes.
"It's the high volume of cargoes traded recently that has caught the market's attention," said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas SA.
"The fuel oil inventory data in Singapore indicates very ample supplies."
According to data compiled by PVM Oil Associates Ltd., contracts for 180 cSt fuel oil for June were set at $17.75 a tonne more than July supplies on May 22, a reported record premium since 2006.
However, near-term cargoes have now reportedly slipped to a $2.50 discount for shipments for later delivery, while contracts for 380-centistoke fuel oil have also slipped in later delivery.
On May 28, the cost of June supplies were said to be $14 a tonne higher than those for July on, while near-term shipments are now sitting at a $2.50 discount to later deliveries.
PetroChina Co. (PetrolChina) was also reported to be among the other large buyers picking up 30 shipments totaling 666,000 tonnes as part of the MOC process.
Mercuria Energy Group Ltd (Mercuria Energy) and BP Plc (BP) purchased 31 and 15 cargoes, respectively.
The recent purchase amounts have been compared to June 2013, when BP, Glencore, and PetroChina bought a total of about 2.6 million tonnes of fuel oil during the "Platt's window."
On Tuesday, it was reported that Singapore saw over $750 million worth of fuel oil traded during the first week of June, about 60 percent of Singapore's average monthly sales.
