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SINGAPORE, Dec 7 (Reuters) - Asian fuel oil prices rebounded on Friday, recovering most of the losses seen in th previous session, as the swaps market was driven higher largely on higher crude oil prices.
Differentials were mixed, with the benchmark 180-cst grade, seen improving as traders offering cargoes into the market raised their sell prices, suggesting talk of Chinese buying had emerged.
The 180-cst grade jumped $10.90 to $472.40 a tonne, while the differential rose $3.50 to a discount of 45 cents. The only participants in the market were European trader Vitol who improved on their offers from the previous session, offering a 20,000 tonne cargo for the Dec. 22-26 loading period at a discount of $1, or at parity for the loading period between Dec. 27 and Dec 31.
It was also offering a similar sized cargo at an outright price of $474 a tonne or parity. As in the previous sessions, there was no interest shown in the respective cargoes.
"The Chinese have been quietly picking a cargo here and there the past week, but details have been pretty sketchy, we hear they are taking something off a boat which arrived here with straight-run fuel oil," a Singapore-based trader said.
The 380-cst bunkers grade rose more than $7.50 to $460 a tonne, while the discounts widened by about 23 cents to $3.35.
There were three deals in the window, with Western trader Cargill taking out PetroChina's offer twice, at a discount of $3.64 for Dec. 22-26 loading.
On the third trade, Japanese trader Marubeni struck Petrochina's offer for a 20,000 tonne cargo at a discount of $2, loading Dec. 27-31.
Activity in the swaps market improved slightly from volumes seen traded earlier in the week to about 70,000 tonnes, with most trades coming in the back end of the cycle.
Bunker prices were valued at around $457-459 a tonne, up $8 from the previous session, with its discount improving 42 cents to $2.
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