Asia/Pacific News
Holidays, Low Prices Mute Asia Fuel Oil Trading Activity
Fuel oil trading in Asia was muted at the end of last week due to a combination of low oil prices and regional holidays, according to media sources.
Crude Friday fell to multi-week lows, and the expectation among some traders is that prices will fall further.
"Nobody wants to do any business for fear they'll make the wrong market call," a Singapore-based fuel oil trader was quoted by Reuters as saying.
"If they buy now they are worried they'll be burned if prices fall."
Another trader said there was a "sense of uncertainty on which way the fuel oil market is heading."
A separate Singapore-based source commented that "Even bunker enquiries have gone soft," but this was downplayed by an unnamed Platts source, who said that even though demand was down, on Friday it was "still looking healthy."
As it was, after falling for four straight sessions, IFO380 bunker prices in Singapore were up $2/mt Monday to an average of $254/mt, according to Ship & Bunker data.
Crude prices Monday also firmed.
