Sellers like Vitol, Glencore, and Chemoil find alternative offload in Singapore

Good take on using future to offload excess inventories, from Reuters out of Singapore:

SGX fuel oil futures plan attractive to sellers

Reuters

29 April, 2009

Journalist: Yaw Yan Chong

 

Singapore Exchange's proposed fuel oil futures could see warmer reception from sellers, who see it is another way to offload cargoes, than buyers averse to paying security deposits and to its loading limits, traders said on Wednesday.

 

SGX (SGXL.SI: Quote, Profile, Research), which is developing a fuel oil contract similar to that operated by SIMEX in the early 1990s, held a session on Tuesday with majors Shell, BP and Singapore Petroleum Co, as well as traders Vitol, Glencore, Chemoil, Hin Leong, PetroChina, shipper Maersk and bunker supplier Equatorial Marine.