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Asia Fuel Oil-Cracks slip on rising crude; trade activity muted

Rising crude oil prices weighed on fuel oil cracks amid muted trade activity in both the physical and paper markets. CRACKS – Asia’s 180-cst fuel oil crack to Dubai crude for September slipped 17 cents a barrel from the previous session to minus $1.72 a barrel, its lowest since Aug. 14. – Similarly, the front-month 180-cst fuel oil crack to Brent crude was down 8 cents to minus $3.29 a barrel. – Oil prices rose, lifted by indications that supply may be tightening gradually, especially in the United States. – Brent crude’s premium to Dubai rose to $2.13 per barrel for October, the widest spread between the two crude oil benchmarks since Dec. 21, according to two trade sources. – The spread has widened because of higher Brent prices caused by tighter supplies of North Sea crude in August and September, a third trading source said. WINDOW TRADES – No cargo trades were reported in the Platts window. – Please click on for more details. TENDERS – The UAE’s Adnoc has offered up to seven 85,000 to 90,000 tonne cargoes of straight-run fuel oil (SRFO) for export from its Ruwais refinery for delivery from mid-September through October closing on Aug. 22 with validity until Aug. 29. – Adnoc typically offers five cargoes of SRFO each month, however the national oil firm offered seven cargoes in its latest export tender. – It was unclear if Adnoc’s increased offering was a result of higher production from the Ruwais refinery, or whether this resulted from the cancellation of two earlier SRFO cargoes for September delivery, industry sources said. – Adnoc could not be immediately contacted for comment. – The loading dates for the latest SRFO tender are Sept. 13-15, Sept. 28-30, Oct. 4-6, Oct. 9-11, Oct. 15-17, Oct. 20-22 and Oct. 26-28. – Sources said Adnoc previously sold up to five 85,000 tonne SRFO cargoes for delivery on Sept. 1-3, Sept. 7-9, Sept 13-15, Sept. 19-21 and Sept. 25-27 to undisclosed buyers at a premium of about $18-$22 a tonne to Singapore 180-cst quotes. – Separately, India’s state-owned HPCL offered 30,000 tonnes of 180-cst high-sulphur fuel oil for Sept. 11-14 delivery from Mumbai in a tender closing on Aug. 23. – India’s Reliance offered 40,000 tonnes of carbon black feedstock (CBFS) for loading on Sept. 9-10 from Sikka in a tender closing on Aug. 22. – Sources said Reliance previously sold up to 45,000 tonnes of CBFS to PetroChina at an unknown price level for Sept. 5-6 loading from Sikka. ASSESSMENTS FUEL OIL CASH ($/T) ASIA CLOSE Change % Change Prev RIC Close Cargo – 180cst 305.59 -3.68 -1.19 309.27 Diff – 180cst -1.20 0.32 -21.05 -1.52 Cargo – 380cst 302.97 -3.74 -1.22 306.71 Diff – 380cst 0.25 -0.16 -39.02 0.41 Bunker (Ex-wharf)- 380cst 304.00 -5.00 -1.62 309.00 Bunker (Ex-wharf) Premium 1.03 -1.26 -55.02 2.29 For a list of derivatives prices, including margins, please double click the RICs below. Brent M1 180cst M1 180cst M1/M2 180cst M2 Visco M1 Visco M2 380cst M1 380cst M1/M2 380cst M2 Cracks 180-Dubai M1 Cracks 180-Dubai M2 East-West M1 East-West M2 Barges M1 Barges M1/M2 Barges M2 Crack Barges-Brent M1 Crack Barges-Brent M2.

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