SINGAPORE: Spot gasoil demand from Iraq, Vietnam and Indonesia supported the Asian gasoil margin, industry sources said on Monday.
Indonesia's Wilmar Trading was seeking a spot cargo for November while Vietnam's top fuel importer Petrolimex also sought three cargoes for November, the sources said.
Iraq's State Oil Marketing Company sought nearly 2 million tonnes of gasoil for 2017, about 8 percent higher than it sought for 2016, traders said.
Pakistan State Oil bought 10,000 tonnes of jet fuel for delivery in November from BB Energy at a premium of about $4.85 a barrel above Middle East quotes, traders said.
Ceylon Petroleum Corp (Ceypetco) was another buyer, industry sources said, purchasing a total of 618,000 barrels of gasoil and gasoline for delivery in November from PetroChina Singapore.
Ceypetco will pay a premium of $2.58 a barrel to Singapore quotes for 52,000 barrels of 10ppm sulphur diesel and a premium of $2.20 a barrel for 255,000 barrels of 92-octane gasoline for delivery over Nov. 1-2, the sources said.
It will also pay a premium of $1.62 a barrel to Singapore quotes for 217,500 barrels of 500ppm sulphur gasoil and a premium of $3.80 a barrel for 93,500 barrels of 95-octane gasoline for delivery over Nov. 8-9, they added.
Taiwan's CPC Corp is likely to have sold a 10ppm sulphur diesel cargo for loading in November at a premium of about 50 cents a barrel, traders said, though this could not immediately be confirmed.
Jet fuel prices will remain elevated over the next five years as the crude oil market rebalances and global aviation demand remains strong, BMI Research said in a note on Monday.
However, analysts sais they expect the supply of jet fuel in Asia to remain high, with Chinese exports continuing to flood the market.
TENDERS
- Iraq's State Oil Marketing Company is seeking 1.989 million tonnes of 500 ppm sulphur gasoil for delivery into Khor Al-Zubair terminal between Jan. 1 and Dec. 31, 2017. The tender closes on Oct. 19, with offers to remain valid for 20 days.
- Indonesia's Wilmar Trading is seeking 40,000 tonnes of 0.3 percent sulphur gasoil for delivery into Dumai over Nov. 3-7. The tender closes on Oct. 11 and is valid until Oct. 12.
- Vietnam's Petrolimex is seeking three cargoes of 35,000 tonnes each of 500ppm sulphur gasoil for November. The cargoes are for loading from Singapore, Thailand, Malaysia, China, Taiwan or South Korea over Nov. 1-5, Nov. 11-15 and Nov. 21-25. The tender closes on Oct. 11 and is valid until Oct. 12.
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