SINGAPORE – European trader Glencore has snapped up two more cargoes of 92-octane fuel in the Singapore cash market, bringing its total for end-May early-June loading to 400 000 barrels since May 7 to meet demand in Africa, traders said yesterday.
‘Singapore barrels are cheap compared to most places now, making it lucrative to resell the fuel elsewhere,’ said a trader.Glencore bought the two cargoes at US$66,20-$66,30 a barrel from BP, which recently reversed its position to become a seller after buying 1,5 million barrels of 92- and 95-octane for March and April liftings to supply to the Middle East, traders said.’My guess is they (Glencore) are short in Africa and these barrels will be used to cover that,’ said a trader, echoing views from at least four other traders.Glencore’s buying binge comes at a time when oil major Shell has so far scooped up 300 000 barrels of 97-octane fuel for liftings in May and June. The weak prices in Singapore are a result of softer spot demand in the region and these purchases are deemed too small to boost the market. -Nampa-Reuters
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