Singapore oil swaps prices were mixed in midday trade on Tuesday, with a lack of China demand dragging down fuel oil, but healthy orders propping up gas oil and jet-kerosene.
June gas oil swaps prices were quoted at $41.90 a barrel, up from $40.90 on Monday. Traders said jet-kerosene got a boost from robust China demand after China Aviation Oil issued a tender to buy 630,000 tonnes of jet A-1 for the third quarter. The regrade, the price spread between jet-kerosene and gas oil, stretched to $1.50 from $1.30 a barrel for June. The third quarter regrade value also moved in favour of jet-kerosene to $2.30, from $2.15 on Monday.
"I think jet is getting supported by China demand while some are less optimistic about gas oil," said a Singapore-based trader.
Gas oil's crack spread to Dubai crude firmed to $7.85 a barrel, from $7.50/$7.75 on Monday.
June fuel oil paper prices were quoted at $186.50 a tonne, off from Monday's $186/$187.50, despite small crude gains. June's premium to July stayed mostly steady at about 50 cents.
NYMEX July crude futures were up 10 cents at $38.76 a barrel at 0439 GMT, adding to Monday's 17 cent gain in New York when the contract closed at $38.66 a barrel.
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