Subscriber note: Platts Corrects June 20 European Fuel Oil Market Commentary

Please note that the June 20, 2013, European Fuel Oil Market Commentary was incorrectly published in the European Marketscan and Platts Global Alert page 1599. The commentary as it should have appeared is below. Please send any questions or comments to europe_products@platts.com and pricegroup@platts.com

FUEL OIL: European Fuel Oil Market Commentary - 20Jun13: The Northwest European high sulfur fuel oil market was weaker Thursday after Singapore inventories moved to a three-year high, despite a flurry of potential VLCC fixtures to Asia this week. FOB Rotterdam 3.5% sulfur fuel oil barges were assessed at a $0.50/mt premium to the July swap, down from a previous $1.25/mt premium. In Singapore, heavy distillate stockpiles rose to a three-year high in the week ended June 19, according to IE Singapore data. Total stocks of heavy distillates, which IE describes as "residues" and include cracked and straight run fuel oil and low sulfur waxy residue, were reported at 24.36 million barrels, up from 22.35 million barrels a week earlier. One of the largest tankers in the world is on subjects on the Rotterdam to Singapore route, after arbitrage economics for high sulfur fuel oil showed improvement in the past few days, sources said Thursday. The TI Europe is an ultra large crude carrier of 442,500 DWT. The vessel was heard to be on subjects loading on June 30 from Rotterdam to Singapore at a $3.7 million lumpsum. According to market sources Vitol was the charterer. Traders at the company were not available to comment. There was also a VLCC, the Mesdar, reportedly put on subjects by Cargill for early July loading at a lumpsum $3.35 million. In the Mediterranean, Lia found selling interest from Litasco for its HSFO cargo bid basis Malta for back-end window delivery, with a plus $4/mt premium. "The Med is dry of fuel, therefore people are taking product from ARA. The few cargoes being shown in the Med are extremely expensive," a trader said. The Northwest European low sulfur fuel oil market strengthened slightly Thursday, with cargoes assessed up $0.25/mt versus front-month swaps at a $1/mt premium. This was based on activity in the MOC process, in three of the four cargo offers were bought as they were offered down, all by Vitol. Gunvor's RMG 2010 cargo was purchased at balance month minus $1/mt, then BP's standard Platts spec cargo was bought at balance month flat. Finally, Total's RMG 2010 was bought at July plus $2/mt. In the meantime, Total's 0.995 density, 80 ppm metals cargo was offered to H1 July minus $4/mt without trading. Together with Vitol's untraded bid for 290 CST LSFO over July 8-12, this proved a slight physical contango structure, despite a backwardation on the swaps. In barges, BP's back-end offer at $606/mt and Aegean's front-end bid at $606.25/mt proved a backwardated structure and led to the overall assessment of $606.25/mt. (RRRR)