Asian gasoil and jet fuel margins rose to multi-month highs on Monday due to regional demand and lower underlying crude oil prices, industry sources said. The jet fuel margin rose to a more than one-year high of $18.95 a barrel above Dubai crude, while the gasoil margin rose to an almost six-month high of $17.13, Reuters data showed.
Vietnam's Petrolimex entered the spot market to seek gasoil for November, after buying 7,000 tonnes of the fuel for mid-November recently, traders said. Possible arbitrage interest from Europe could also be supporting gasoil prices, traders said.
The Philippines' Petron likely bought a gasoil cargo for delivery in mid-November at a premium of about 80 cents a barrel, a trader said, though this could not be confirmed. Low stock levels in the US Gulf Coast due to refinery outages and exceptionally high demand from Latin America have kept the transatlantic diesel arbitrage closed in recent weeks for most traders, which in turn has pushed up heating oil prices in Europe. A cold spell in North America that is expected next week could further increase demand and limit supplies in the Atlantic basin, in turn supporting diesel demand from Asia, traders said.
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