SINGAPORE: The front-month 380-cst barge crack discount to Brent crude held steady on Monday despite rising crude oil prices.
The October 380-cst barge crack to Brent crude was trading at about minus $11.35 a barrel on Monday, unchanged from its settlement on Friday, broker sources said.
This came amid higher oil prices on Monday as investors focused on the impact of U.S. sanctions on Iran despite assurances by Washington that Saudi Arabia, Russia and the United States could together raise output fast enough to offset falling supplies.
– India’s IOC has sold 35,000 tonnes of 380-cst high-sulphur fuel oil loading from Chennai on Sept. 26-28 to Petrosummit at an unknown price level.
– Pakistan’s PSO has received offers for three 65,000-tonne cargoes of 180-cst fuel oil with a maximum 3.5 percent sulphur content for Oct. 1-10 delivery into Port Qasim.
– Litasco placed the lowest offer for one cargo of the fuel at a $20 per tonne premium to Middle East quotes on an FOB basis.
– Vitol and GP Global placed the next lowest offers at premiums of $28.20 per tonne and $28.45 per tonne, respectively.
– PSO’s tender for its Oct. 1-10 import requirements remains valid till Sept. 23.
– This came as the validity of PSO’s tenders for its Sept. 21-30 import requirements expired on Monday with the state-owned company not awarding any of the contracts.
– Two of the lowest offers for the Sept. 21-30 imports were submitted by Litasco and a third by GP Global at premiums between $17.98 and $24.84 per tonne to Middle East quotes on an FOB basis.
– Funding issues restricted PSO from awarding the latest batch of import tenders, trade sources said.
– With the exception of one HSFO cargo it had bought for Aug. 21-31 delivery, PSO largely halted its fuel oil imports for power generation since late-June amid ample domestic stocks of the fuel and as monsoon rains lowered electricity demand for cooling.
TAIWAN FUEL OIL DATA
– Taiwan exported 746,000 barrels of fuel oil in July, down 31 percent from a month ago but 102 percent higher from the same period last year, government data showed on Monday.
– Since the start of the year, Taiwan’s fuel oil exports totalled 7.519 million barrels, up 46 percent from the same period last year.
– On the demand side, Taiwan consumed 1.827 million barrels of fuel oil in July, down 12 percent from a month ago and 35 percent less than July 2017.
– Taiwan’s January-July consumption of fuel oil totalled 14.483 million barrels, down 19 percent from year-ago levels, the data showed.
CHINA FUEL OIL DATA
– China’s fuel oil production fell 9 percent from a year ago to 1.94 million tonnes in August, data from the National Statistics Bureau showed.
– China’s fuel oil output for the first eight months of 2018 totalled 15.933 million tonnes, down 12 percent from the same period last year.
– One cargo trades was reported in the Singapore trading window totalling 20,000 tonnes of 180-cst high-sulphur fuel oil (HSFO).
– Trafigura sold the cargo to Vitol at a $2.50 premium to Singapore quotes.–Reuters