The spread between higher and low quality fuel oil in Asia widened to the most in seven weeks as BP Plc (BP/) and Glencore Xstrata Plc (GLEN) boosted purchases of the more expensive grade of the refined product.
The viscosity spread for the remainder of June, or the differential between the price of 180-centistoke and 380-centistoke fuel oil, rose a seventh day to $15.75 a metric ton at 12:55 p.m. in Singapore. That’s the highest level since April 22, according to data compiled by Bloomberg. BP, Glencore and PetroChina Co. (857) bought a total of at least 1.06 million tons of 180-centistoke cargoes so far this month in the Platts window, more than three times as much as was purchased in May, a Bloomberg survey of traders who monitor the trading platform shows.
“The viscosity spread is a lot stronger,” Alex Yap, an analyst at Facts Global Energy, said by telephone from Singapore. “Prices are quite likely to be supported.”
BP bought a total of 22 cargoes, or 440,000 tons, of 180-centistoke fuel oil during the four trading sessions on Platts this month, the Bloomberg survey shows. Glencore purchased 18 shipments, or 360,000 tons, and PetroChina took 13 cargoes, or 260,000 tons. The supplies were mostly provided by Litasco SA and Vitol Group, the survey shows. About 280,000 tons of the fuel were traded in the Platts window in May.
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