Fuel switch to buying less Kuayue spread backwardation

Singapore on July 6, according to sources, the Asian fuel oil market held firm Tuesday, the spot in July / August Kuayue spread in more than five months since the first go against the spread, and two grades of fuel oil physical spread also go to the positive region.

Fuel oil crack spread remained at near two-month high, representing a premium for a second day of Dubai crude oil less than 5.00 U.S. dollars.

However, fixed-price contract volume declined in August due to buying less, only 75 thousand tons of transactions, the previous day was 22.5 million tons, the sale prices ranged between USD 428.50-429.75 per ton.

In July from the West into the East Asia arbitrage cargoes at 350-360 million tons, compared with nine months before the month's record high of 380-390 million tons of reduction of 8%. In August remained unchanged at 240-250 million tons.

Official data showed on June 30 in Singapore stocks ended the week steady at 2,190 million barrels, slightly down 8.8 million barrels.

7 / August swap spread is the spread from 0.50 U.S. dollars per ton to take the firm 0.13 U.S. dollars per ton against the spread.

8 / September swap spreads also take firm, positive spreads narrowed 1.00 to 0.75 U.S. dollars per ton.

In recent months, in August contract crack spread wide and 0.04 U.S. dollars go a little barrel of Dubai crude oil than the premium 4.64 U.S. dollars.

180-cst fuel oil rose 1.25 U.S. dollars to 429.13 U.S. dollars per ton .380-cst fuel oil rose 1.38 U.S. dollars to 420.88 U.S. dollars per ton.

Previous day price movements of oil prices

Spot 180CST fuel 429.00/429.25 427.88 +1.25

Spot 380CST fuel 420.75/421.00 419.50 +1.38

Singapore's marine fuel oil 423.00/426.00 421.00 +3.50

380CST premium marine fuel oil 1.50 2.13 3.43/3.83