Asia/Pacific News
Asia Fuel Oil Falls to 11-Year Low, Seen Under Pressure On Western Arbitrage
Asian fuel oil prices Thursday fell to their lowest level since January 2005, Reuters reports.
Singapore 180 cSt cargo prices hit $163.95 per metric tonne (pmt), while 380 cSt cargoes were quoted at $159.28 pmt and $164.28 pmt for bunker ex-wharf.
This was said to be the fifth session in a row where prices have fallen.
Differentials remained unchanged from the previous day's trading, while ex-wharf premiums were said to have been strengthening over the past week.
The news service noted that trading in the region has been quiet, but quoted a Singapore-based trader as saying that they "expect more downside in fuel oil prices given the large arbitrage inflows expected in January."
It was said that such inflows may be particularly strong from Western regions into Asia.
Glencore this week sold 20,000 tonnes of 380 cSt high-sulfur fuel oil to Hin Leong for
January 12 to 16 loading at a discount of $3.00 pmt to the average of January Singapore
quotes, Reuters said.
In August, Ship & Bunker reported that a poor demand outlook was seen contributing to a "fundamental change" in the Asian fuel oil market.
