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Asia Distillates-Firm demand boosts gasoil, jet fuel differentials

by April 19, 2017 General

Firm regional demand boosted gasoil and jet fuel differentials on Wednesday as supply remained tight amid refinery maintenance, traders said.

– WINSON BUYS: Winson Oil was active in the Platts trading window, snapping up 750,000 barrels of the 1.05 million barrels of 500ppm sulphur gasoil traded, traders said. Ocean Energy was the other buyer. Winson Oil could be shipping the cargoes to the bunker market in China, they added, though this could not immediately be confirmed.

– TANZANIA TENDER: Tanzania’s Petroleum Bulk Procurement Agency is seeking 265,916 tonnes of oil products including gasoil, jet fuel and kerosene for delivery in June in a tender that closes on April 27.

– PETRON MALAYSIA TENDER: Petron Malaysia is seeking 247,000 barrels of gasoil and gasoline for delivery in May-June in a tender that closes on April 19.

– BAPCO GASOIL: Bahrain Petroleum Co has offered 40,000 to 60,000 tonnes of 10ppm sulphur gasoil for May 11 to 14 loading. The tender closes on April 20.

– INDIAN GASOIL: Indian gasoil continues to be shipped to Asian countries instead of west or Africa as it traditionally does due to unprofitable arbitrage economics, traders said. Still, it is currently not profitable to store the oil product in tanks either, which means traders are trying to sell the cargoes at a cheaper price, one of them said.

– INDONESIA STORAGE: Indonesian toll-road owner and operator NatPac Graha Arthamas is planning to build an oil storage terminal in east Java that can hold 280,000 kilolitres, or 1.76 million barrels, a senior company official told Reuters. “It will be able to store oil products or crude oil, depending on what the customer needs,” said operations director Bambang Sulawan. He declined to say how much the terminal, to be sited in Lamongan, would cost to build, nor where construction finance would come from.

– JAPAN OIL: Japan’s jet fuel exports dipped by 2 percent in the week to April 15 from the week before, latest data from Petroleum Association of Japan (PAJ) showed. Gasoil exports, on the other hand, jumped by nearly double, the data showed. Kerosene inventory fell to its lowest since PAJ started publishing the data in 2003. Japanese refiners are maximising production of gasoil over jet fuel and kerosene, which is contributing to lower stocks and exports, traders said.

– SINGAPORE CASH DEALS: Seven gasoil trades and two jet fuel deals. Please refer to for more details MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 65.01 -0.20 -0.31 65.21 GO 0.5 Diff -0.40 0.05 11.11 -0.45 Spot Gas Oil 0.25% 65.21 -0.20 -0.31 65.41 GO 0.25 Diff -0.20 0.05 20.00 -0.25 Spot Gas Oil 0.05% 65.78 -0.18 -0.27 65.96 GO 0.05 Diff 0.36 0.06 20.00 0.30 Spot Gas Oil 0.001% 66.06 -0.11 -0.17 66.17 GO 0.001 Diff 0.60 0.09 17.65 0.51 Spot Jet/Kero 65.32 0.03 0.05 65.29 Jet/Kero Diff -0.15 0.05 25.00 -0.20 For a list of derivatives prices, including margins, please double click the RICs below. Brent M1 Gasoil M1 Gasoil M1/M2 Gasoil M2 Regrade M1 Regrade M2 Jet M1 Jet M1/M2 Jet M2 Gasoil 500ppm-Dubai Cracks M1 Gasoil 500ppm-Dubai Cracks M2 Jet Cracks M1 Jet Cracks M2 East-West M1 East-West M2 LGO M1 LGO M1/M2 LGO M2 Crack LGO-Brent M1 Crack LGO-Brent M2
Source: Reuters (Reporting by Jessica Jaganathan; Editing by Biju Dwarakanath)