Asia Fuel Oil Faces Further Price Pressure

Asia fuel oil prices edged slightly lower in Friday.

trade amid worries of further downward potential over the next few weeks given the fundamental oversupply from expected January arbitrage flows and growing weakness in crude oil markets, traders said.

Trading activity was typically slow for this time of year with most traders having already locked in positions for December and most of January.

"We are now in a sideways trading cycle driven by market consolidation," said one Singapore-based trader. "Those inclined to sell their inventory before the year-end will have a bit more pressure to do so over the coming two weeks, but I don't think there will be many more takers for this level anymore."

In other market news, South Korea's Western Power Co Ltd bought 90,000 tonnes of Singaporean high-sulphur fuel oil from Daewoo International Corp for January arrival via two spot tenders that closed on Dec. 11, a source from the utility told Reuters on Friday.