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From Edgy Monkey, 4 Months ago, written in Plain Text.
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  1.  More powerful low-sulfur fuel oil need from Japan after the quake will reinforce up Oriental market over the long-term, said a significant distributor of LSFO in Singapore.
  2.  In theory, Japan's demand for LSFO grew past supply from Asia, according to the supplier. Currently, Oriental nations are exporting only about 200,000 mt of LSFO per month, with about 120,000 mt to Japan. Also if all these Oriental freights are delivered to Japan, supply will still be quite short because Japan is estimated to call for concerning 30,000 mt of fuel per day, he described.
  3.  Not much gas oil from the west will certainly be provided to Japan in the close to term, as a result of reasonably high sulfur content of such sources, he stated. For power generation, Japan needs sulfur material to be listed below 0.3%, while most fuel oil from the west is of regarding 3.5% of sulfur web content, and merely regarding 10% of gas oil from western producers has sulfur content listed below 1%.
  4.  "As a result, Japan might not increase imports as sharply as formerly expected. It is approximated to trek March-April imports of LSFO by concerning 50,000 mt or 33% from February," he noted.
  5.  The supply space will certainly be loaded by alternative energy, primarily by gas, after that coal and crude, claimed an oil trading source.
  6.  Enhanced need from Japan has actually increased the costs of LSFO in Asia. " https://www.irodtpmp.com/ of Indonesian V500 LSFO has climbed to about US$ 90/mt under the regards to CFR East Asia, up US$ 15/mt from February. Over the long term, all the LSFO from Asia will certainly stream to Japan," said a physical gas oil trader.
  7.  The assistance will certainly last for a long time, stated the investor, as power supply from the nuclear power plant that exploded may be put on hold for two years.
  8.  Robust need for LSFO likewise drove up Singapore fuel oil market, which climbed by about US$ 10/mt on Mar 14, regardless of decline in global crude.
  9.  "Most bulls out there were Japanese business that bought lengthy positions primarily for April-June. In addition, in the area market, bulls purchased huge quantities of April swaps, which raised the crack infect the narrowest level because the center of February, to minus US$ 7.09/ bbl on Monday, tightening by US$ 2.86/ bbl from last Friday," said a trader of derivatives. Stronger need for LSFO had injected solid up momentum right into the marketplace, the investor included.
  10.  Japanese biggest power business Tokyo Electric Power has actually not released a tender to source LSFO this month. In the of 2010, the business purchased around 2.94-mil mt of gas oil, around 11% of the fossil fuel that it bought in the year, according to information from the business.
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