SINGAPORE: A fall in gasoil and jet fuel inventory and a rise in domestic demand for gasoil in China is supporting margins for the fuel, trade sources said on Thursday.
- VIETNAM BUYS LOW SULPHUR DIESEL: Vietnam's top fuel importer Petrolimex bought its first ultra low sulphur diesel ahead of a January specification change in the automotive industry, sources said.
The bought 35,000 tonnes of 10ppm sulphur diesel for Dec. 6 to 10 loading at a premium of $1.50 a barrel to Singapore 500ppm sulphur gasoil quotes, one of them said.
It also bought two cargoes of 35,000 tonnes each of 500ppm sulphur gasoil for Dec. 4 to 8 loading and Dec. 16 to 20 loading at a premium of 50 cents a barrel to Singapore 500ppm sulphur gasoil quotes, the source added.
The cargoes were bought on a free-on-board (FOB) Singapore, Malaysia or Thailand basis.
- SINGAPORE STOCKS: Singapore onshore gasoil and jet fuel stocks slipped by 2 percent to a two-week low of 11.787 million barrels in the week to Nov. 22, latest data from International Enterprise showed.
Diesel shipments from Singapore to the Philippines, Vietnam, Australia and Hong Kong rose from the previous week while imports of the fuel from India fell, contributing to the drawdown in inventory, the data showed.
- CHINA DIESEL DEMAND: A rally in China's diesel prices has pushed the fuel to a rare premium over gasoline as dealers scramble to scoop up supplies amid fears of shortages due to Beijing's war on smog and possible tax changes.
Led by a spike in benchmark crude prices, wholesale diesel prices have jumped 11 percent since October to 6,700 yuan ($1,011) per tonne on Tuesday in eastern Shandong province, a 320 yuan premium to gasoline, according to consultancy Longzhong Information Group.
- TEAPOTS APPLY FOR QUOTA: A newly formed group of China's independent oil refiners filed an application with the country's Ministry of Commerce on Wednesday for fuel export quotas next year, a source with one of the group's member companies said.
Jiao Chong, the managing director of Qingyuan Group, a founding member of the Shandong Refining Group, said the government shall consider rewarding plants with fuel quotas that have moved quickly to upgrade their fuel quality to meet more stringent emissions standards and established credit in the crude oil market.
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