Fuel-Oil Premium to Rise Fivefold in Survey: Energy Markets
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Rising Chinese demand for energy that’s helped push shipping costs higher may lead to a fivefold increase in the premium of Asian December fuel oil over January.
The extra cost for next-month fuel-oil swaps traded in Singapore compared with January contracts may climb to $5 a metric ton during December from $1 a ton today, according to a survey of four traders by Bloomberg News. The last time the difference, or timespread, reached that level was October 2009.