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imageSINGAPORE: Asian gasoil differentials edged higher on Thursday on the back of a wave of deals, in which 27 cargoes changed hands, trade sources said.

Winson Oil was the main seller of the 27 cargoes, after being the main buyer of gasoil from mid-September to November.

The company has been storing gasoil in ships and onshore tanks, and is likely to be taking advantage of a rise in underlying crude oil prices to sell them at a profit, traders said.

Vietnam's Petrolimex bought three cargoes of 35,000 tonnes each of for January at a discount of 10 cents a barrel to Singapore quotes, industry sources said.

The cargoes were for loading from Singapore, Malaysia or Thailand and were bought with a "Form D" certificate issued by the respective ASEAN country's customs authority to prove the origin of the oil product, one of the sources said.

This was lower than the premium of 5 to 10 cents a barrel Petrolimex paid for December cargoes, the sources said.

Taiwan's Formosa Petrochemical Corp sold two cargoes of 300,000 barrels each of 10ppm sulphur diesel for Jan. 16 to 20 loading to BP and Winson Oil at a premium of 32 cents a barrel to Singapore quotes, traders said.

This is nearly half the level it achieved for a late-December loading cargo earlier, traders said.

Taiwan's CPC Corp bought a jet fuel cargo for January delivery at a slight premium to Singapore quotes, an industry source said.

In term negotiations, South Korea's SK Energy likely finalised its high-sulphur gasoil contracts at a discount of $1.55 a barrel to Singapore quotes, traders said, though this could not immediately be confirmed.

South Korea's S-Oil Corp is likely to be negotiating its 500ppm sulphur gasoil at a premium of 60 cents a barrel and its jet fuel cargoes at a discount of 10 cents a barrel, one trader said. But it was not immediately clear if the terms had been finalised.

Copyright Reuters, 2016

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