SINGAPORE: Asia's jet fuel cash premiums extended losses on Monday, falling to a near five-week low as slowing seasonal demand weighed on bullish sentiment that boosted the jet fuel market to multi-year highs since the start of the year, trade sources said.
Japanese demand for the middle distillate fuel for the remainder of March still prevalent in the market but its imports of the fuel in April was so far seen as limited due to ample supplies and receding winter demand, trade sources said.
Meanwhile, sustained buying interest for physical cargoes of 10ppm gasoil helped firm cash differentials of the fuel to its widest premium in a month at 20 cents a barrel on Monday, up from an 18 cents a barrel premium on Friday and a 2018 low of minus 6 cents a barrel in the previous week.
TENDERS
- India's Essar Oil sold up to 60,000 tonnes of jet fuel loading from Vadinar over April 21-25 to Unipec at a premium of about $1.50-$1.60 a barrel to Middle East quotes on an FOB basis, sources said.
- Essar Oil is also offering up to 60,000 tonnes of jet fuel loading from Vadinar for June 16-30 delivery in a tender closing on March 9 with same day validity, sources said.
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CPC OUTAGE
- Taiwan's government has ordered state-run refiner CPC Corp to partially suspend operations at a refinery in the southern city of Kaohsiung, a government official told Reuters on Monday, after a fire injured three workers.
- CPC's Talin refinery in Kaohsiung was hit by an explosion on Saturday and part of its production will be suspended until further review, said Chung Mon Pi, chief secretary of the city's Labour Affairs Bureau.
- The incident will affect daily production of about 35,000 barrels of reformate, but there will be no shortfall in domestic supply thanks to abundant inventory, CPC Vice President Ann Bih told Reuters by telephone.
- CPC is aiming to resume its full production at the plant by end-March after a review by the government, she said.
- CPC's diesel output was hit in January after an explosion at a refinery in the northwestern city of Taoyuan.
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