Specializing in International Freight Forwarding, by way of ocean, air, rail and truck freight-RISINGSUN

Asia Fuel Oil-Viscosity spread narrows to more than 2-month low

Time：2014-06-18 Browse：114 Author：RISINGSUN

The viscosity spread, or price difference between 180-cst and 380-cst swaps, tanked to a more than two-month low of $6.50 a tonne, as lower arbitrage volumes limit the use of 180-cst as a cutter stock.

The 180-cst premium stood at $1.75 a tonne to Singapore spot quotes, down 33 cents a tonne

from Monday, Reuters data showed.

About 1.89 million tonnes of fuel oil from the United States and the Caribbean will reach

Asia, compared with 2.47 million tonnes expected to arrive this month, Reuters previously reported.

The less viscous grade, 180-cst, may be used to blend down high viscosity cargoes that stream in from the Americas, traders said.

“The market is pretty flat, it could trend lower,” said a Singapore-based trader.
Demand from China has also been slow to pick up.

“The overall Chinese economy is not as robust, so it seems there is no significant improvement,” said a China-based trader.