“Demand is still slow,” said a Singapore-based trader.
“Bunker demand is steady, but demand from other users is low,” the trader said.
Arbitrage volumes may also increase in December as traders in the West release inventory as they close their books ahead of the end of the fiscal year, another trader said.
“The market was expecting 3 million tonnes, but that is gradually going up with 4 million tonnes the market consensus,” the trader said.
“This won’t be good news,” the trader said.
Fuel oil stocks in Singapore while falling are still higher than last year, he said.
Data last week showed residual fuel stocks totalled 25.64 million barrels in the week to Nov. 4 compared with 17.7 million barrels in the similar period last year.
The weakness in fuel oil’s price relative to crude looks set to continue as Chinese demand drops and bunker fuel volumes remain hostage to the global economic outlook, Reuters columnist Clyde Russell said on Wednesday.
Global oil trader Vitol SA will acquire 15 percent of Pakistan’s Hascol Petroleum Ltd with an option to buy another 10 percent within one year, Hascol said on Tuesday.
SINGAPORE CASH DEALS: Three trades reported.
Hin Leong bought from Koch 20,000 tonnes of 380-cst grade fuel oil for Nov. 26-30 loading at a discount of $ 1.75 a tonne to Singapore quotes.
Hin Leong bought from Glencore 20,000 tonnes of 380-cst grade fuel oil for Nov. 26-30 loading at $ 230 per tonne.
BP bought from Chevron 20,000 tonnes of 380-cst grade fuel oil for Nov. 26-30 loading at a discount of 2.25 a tonne to Singapore quotes.