ASEAN KEY DESTINATIONS
Singapore fuel oil trade hits fresh record high volume
THE daily volume of fuel oil traded during the pricing process in Singapore hit a record high on Thursday, traders said.
A total of 726,000 tonnes of fuel oil were traded during Platts’ - a McGraw Hill Financial unit - Market on Close (MOC) pricing process on Thursday, surpassing the previous all-time high of 580,000 tonnes hit on Tuesday, traders said.
An email to Platts seeking a comment on Thursday’s trade remained unanswered. It had earlier confirmed Tuesday’s volume to be a record high.
Of the total traded volume on Thursday, 60,000 tonnes were of the 180-centistoke grade, a less viscous type of fuel oil compared to the more widely traded 380-cst grade.
The remaining trades were all of 380-cst fuel oil, of which 40,000 tonnes will be loaded from Malaysia.
With effect from July 1, Platts will include approved loading ports in Malaysia in its pricing assessments for fuel oil, gasoil, jet fuel and gasoline.
A total of 1.8 million tonnes of 180-cst and 380-cst fuel oil have been traded to date in June.
The flurry of activity was not unexpected, given the build-up in open interest in June-related fuel oil swaps.
Traders are also expecting fuel oil trades to easily top three million tonnes this month.
A record of 3.175 million tonnes of 380-cst fuel oil was traded in October 2013.
As activity continued to pick up over MOC, Singapore’s fuel oil stocks surged to their highest level last week on weaker exports, in a sign that regional demand may be offset by growth in supplies.
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