Guangzhou (C1 Energy)--The fuel oil delivery stock at nine designated oil terminals of the Shanghai Futures Exchange (SHFE) was at 117,786 tonnes on Friday, flat with a week ago, data released by the SHFE showed.
Delivery warrants inched down by 2,950 tonnes to 16,650 tonnes in the period, according to the data.
The drop was in Xiji oil terminal, but the fuel oil did not flow into the spot market. An industry source said it is possible that the product was received by bunker traders because of lofty prices of 180CST bunker fuel oil in south China, which have once exceeded futures prices.
Retail price of 180CST bunker fuel oil was at yuan (CNY) 5,200/tonne in south China on Friday, only CNY11/tonne lower than the settlement price of Benchmark March contract, according to C1 data.
Calculated by the benchmark March contract, the spot-futures arbitrage margin was minus CNY30/tonne on Friday, C1 data showed.
SHFE fuel oil futures delivery stock is expected to fall at the end of January, because new specifications will take effect from February, market sources said.
Open interest of front-month February contract is only eight lots at present.
SHFE designated a total 910,000cbm of delivery stock for fuel oil futures at the nine terminals.
