Uptrend seen in fuel oil prices

Uptrend seen in fuel oil prices

SINGAPORE (Reuter): Singapore high sulfur fuel oil prices were
rangebound yesterday but the current healthy trend was expected
to continue in the near term, traders said.

Late in the Asian trading day, July loading cargoes were bid
at US$98.50 per ton and offered at $99.00. Despite the narrow
range between bids and offers, no deal was concluded.

Quotes were rangebound, staying between recent levels of $97-
$99, traders said.

A recent active buyer in the market, a Singapore trader, has
already bought a total of 120,000 tons of fuel oil for July
loading in the last week.

The local trader said he would continue to buy at under $100
per ton.

But a handful of traders were skeptical of any further rise.

"Even if he continues to buy, I wonder if there is genuine
demand in the region to serve as outlet for his purchases so
far," said one major.

Some traders said although there were pockets of enquiries for
China, Vietnam's tender demand, and Indonesia, current demand was
not out of the ordinary.

There were also additional supplies from the Mideast with a
western trader heard bringing a cargo to the region at the end of
July.

Swaps were also steady, July and August swaps quotes at
$98.50/$99.50.