West-East Fuel Oil Arb Continues

[ogarbitrage]

I needed a project today.

Feb 4: Asia Fuel Oil-Intermonth spreads in contango; supply weighs

Quote from Reuters:
Asia fuel oil intermonth spreads remained in deep contango on Monday, with sentiment depressed by continued heavy supplies from the West, trade sources said.

Black: Singapore Fuel Oil 380 cst (Platts) Futures
Red: Singapore Fuel Oil 180 cst (Platts) Futures
Blue: European 3.5% Fuel Oil Barges FOB Rdam (Platts) Futures

Quote from Reuters:
The balance February/March intermonth spread was steady at a contango of $4.00 a tonne by the Asian close. The second-month March/April contango widened by 50 cents to 88 cents a tonne.

Feb 6: Asia Fuel Oil-February Western arbitrage arrivals at 5-mth low

Quote from Reuters:
An imbalance in arrivals of lower and higher viscosity grade materials also saw the front-month viscosity spread falling below $5.00 for the first time in more than 2-1/2 years at the beginning of February.

The viscosity spread is the difference between the outright prices of 180-centistoke (cst) and 380-cst fuel oil, and acts as one of the indications of the blendstock balance in the market.

 

[ogarbitrage]

Bitcoins Reserve flatters me. It appears they enjoyed my graphs.

 

[bone]

Bitcoins Reserve flatters me. It appears they enjoyed my graphs.

I enjoy your graphs as well. Do you have access to Platt's or Bloomberg tanker or barge rates ? Another good variable to track would be storage or rack rates. Those would be a great inclusion.

 

[ogarbitrage]

I have most Platts product/crude prices and I check the liquid tanker routes daily to gauge any excess demand over the available tonnage. The smoke I usually look for is any curve in backwardation.

Cheap international storage data is hard to come by unfortunately, but I hope to add that to my tool chest eventually.