Western fuel oil cargoes arriving in Asia this month are estimated at 3.1-3.3 million metric tonnes.
Western fuel oil cargoes arriving in Asia this month are estimated at 3.1-3.3 million metric tonnes (mt), up slightly compared to 3.0-3.2 million mt in March, reports said.
Arbitrage cargoes for May are estimated to be lower at 2.6-2.8 million mt so far.
Lower volumes of Western parcels next month into Asia are a result of European oil refiners slashing capacity due to poor margins, it was reported.
France's state oil firm Total is expected to shut 10-20% of its overall 1.4 million barrels per day (bpd) capacity at its eight refineries in France, Germany and the Netherlands.
Tight capacity in the US Gulf Coast is also soaking up some cargoes out of Europe, traders were quoted saying.
Traders added that arbitrage volumes under 3 million mt are acceptable, while volumes dipping below 2 million mt would put the market under very tight conditions.