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Singapore fuel oil trade volume highest in at least 5 years: traders

[SINGAPORE] The daily volume fuel oil trades concluded during the Asia's pricing process hit its highest in at least five years on Tuesday, traders said.

A total of 620,000 tonnes traded on Tuesday, of which 560,000 tonnes were 380-centistoke grade - nearly a third of the monthly volume traded in May over the price assessment process facilitated by Platts, a unit at of McGraw Hill Financial.

"I believe we may have the record today," said a Singapore-based trader, referring to the total daily trade volume of both the 180-cst and 380-cst grades.

Another trader confirmed that the largest daily volume traded he had seen in his career of more than five years was around 400,000 tonnes in June 2013.

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Platts could not immediately confirm if Tuesday's volume was the highest ever.

Traders are expecting physical cargo trade for the 380-cst grade to easily top 3 million tonnes in June, based on open interest in derivatives for the oil product.

The last time the monthly trade volume exceed the 3 million tonne mark was in October 2013, when it hit 3.2 million tonnes.

The total open interest for the June 380-cst and 180-cst grades stand at 12.7 million tonnes and 4 million tonnes as at May 29, data from Intercontinental Exchange and Chicago Mercantile Exchanged showed.


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