Asia oil products 'firm' until March<\/p>\n
SINGAPORE (Reuter): Diesel, jet-kerosene fuel and fuel oil in
\nAsia are set to sustain their three-month old rally until early
\nMarch 1996 on tight supplies and firm demand, trade sources said
\nyesterday.<\/p>\n
Diesel and kerosene prices, now at five year-highs, are
\ncausing anxiety among regional buyers such as Indonesia, Japan,
\nIndia, Vietnam and Asian airlines. Buyers are finding it hard to
\nfind supplies, especially for January, even at high prices, and
\nthat is straining budgets.<\/p>\n
Indonesia, hard-pressed to meet high kerosene prices, hopes to
\ndiversify its sources, a Pertamina official said. But traders
\nsaid the global tightness left Indonesia few options.<\/p>\n
Kerosene and diesel prices started rallying in October, after
\na series of regional refinery mishaps coincided with high
\nseasonal demand.<\/p>\n
\"India's refinery problems might remain until early February,
\nwhich has attracted large diesel imports,\" a trader at a major
\noil firm said. Japan's low refinery runs and high winter demand
\nare continuing to soak up kerosene supplies.\"<\/p>\n
Japanese refiners Cosmo Oil Co. Ltd. and Tonen would raise
\ntheir crude runs to meet demand early next year, a Japanese
\nrefiner said.<\/p>\n
But the refiner did not believe others would follow suit as
\ndomestic kerosene prices remained low, despite spiraling
\ninternational prices, Most Japanese refineries had cut their runs
\nby five to 10 percent in the fourth quarter, ahead of the
\ncountry's oil industry deregulation next year and to help firm up
\ndomestic prices.<\/p>\n
Traders said Korea's winter demand for kerosene remained firm,
\nwhile Indonesia would continue to produce less kerosene until May
\nbecause of limited storage at the Cilacap refinery.<\/p>\n
Kerosene supplies in Singapore and the Middle East are scarce,
\nwhile most cargoes from the U.S. and Caribbean have been
\ncommitted to Japan and Korea. For example, Vietnam was told by
\ntwo major oil refiners in Singapore that there are no kerosene in
\nJanuary and supplies for February and March are limited.<\/p>\n
Cargo kerosene prices are testing US$32 a barrel for January,
\na level not seen since the 1990-1991 Gulf War. February remained
\nfirm at over $28 compared with $20.50 in mid-August.<\/p>\n
Diesel prices have also topped $26 for January and $25 for
\nFebruary. The sustained firm prices are reflected by an offer for
\nMarch paper diesel at $24.50, and a bid for the second quarter at
\n$23.30, compared with $20.15 in October.<\/p>\n
Diesel prices were boosted by India's total purchases of two
\nmillion tons in January and February and projected import demand
\nof 850,000 tons in March.<\/p>\n
The middle-distillates and fuel oil markets were further
\nhelped by a fire on Wednesday that forced Singapore Refining Co.
\nto cut its refinery capacity by 100,000 barrels per day (bpd).<\/p>\n
Supplies in the first and second quarters may also be limited
\nby Kuwait's phased shutdown of its three refineries.<\/p>\n
But a Kuwait Petroleum Corp (KPC) official was reported to
\nhave said that the scheduled maintenance might not affect
\nsupplies to its customers. Traders said that KPC might be able to
\nfulfill its term commitments but be hard pressed to meet spot
\ndemand.<\/p>\n
Fuel oil prices reached a five-month high of $118 a ton for
\nthe 180-centistoke grade and traders expect it to test $120 soon.
\nDemand was seen from India, China and Thailand as well as
\nshipowners' emerging bunker needs after the Christmas holiday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asia-oil-products-firm-until-march-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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