Asian diesel prices hit 5-year high<\/p>\n
SINGAPORE (Reuter): Asian diesel prices have hit a five-year
\nhigh as cold weather in other parts of the world has reduced
\nsupplies usually exported to Asia and regional demand remains
\nstrong, oil traders said yesterday.<\/p>\n
Regional refinery and power problems and stronger crude oil
\nprices in the United States and Europe have also pushed Asian
\ncrude and refined product prices higher, traders said.<\/p>\n
Prices surged overseas after U.N. talks with Iraq on limited
\noil sales ended on Monday with no agreement. Iraq has been banned
\nfrom exporting oil since it invaded Kuwait in 1990.<\/p>\n
\"Turnarounds (maintenance) at Middle East refineries in March
\nalso mean not many barrels are available and sustained cold
\nweather in the U.S. and Northwest Europe are diverting cargoes
\nfrom Asia,\" one trader added.<\/p>\n
Refineries in Kuwait and Abu Dhabi will be shut for scheduled
\nmaintenance from March.<\/p>\n
Traders said the diesel market was bullish worldwide with high
\nheating oil prices in the United States and firm diesel futures
\nprices on London's International Petroleum Exchange.<\/p>\n
Startup problems or delays at new refineries in Thailand and
\nSouth Korea were also squeezing supplies, they said.<\/p>\n
On Thursday, a major European oil firm sold 240,000 barrels of
\n0.5-percent sulfur diesel to a Singapore trader at a five-year
\nrecord of US$27.75 a barrel for March 8-12 lifting on a free-on-
\nboard (FOB) Singapore basis, traders said.<\/p>\n
Early last week, a March cargo was sold at a record premium of
\n70 cents a barrel to Singapore spot quotes on an FOB basis, with
\ncurrent levels seen at 60-65 cents premium.<\/p>\n
Prices have hit five-year highs twice in the last six weeks.<\/p>\n
They peaked at $27.20 on Jan. 11 before plunging along with
\nNew York Mercantile Exchange (NYMEX) crude futures. Prices began
\nrecovering January 24 and hit $27.50 on Feb. 12.<\/p>\n
The paper market also rallied on Friday with March gaining
\n$1.50 over two days to be bid at $26.30 a barrel.<\/p>\n
The closure of Skikda, Algeria's main port for oil products
\nexports, also throttled supplies, traders said. State oil firm
\nSonatrach declared on Feb. 13 a force majeure on diesel liftings
\nwhich is still in force, term lifters said.<\/p>\n
This had no direct impact on prices, but as good quality
\ndiesel for South Korea can only come from Algeria and the United
\nStates, it has perpetuated bullish sentiment, a Japanese trader
\nsaid.<\/p>\n
Traders said the problem at Skikda might have forced South
\nKorean refiners to buy two cargoes of 0.1 percent sulfur diesel
\nfor mid-March delivery at $2.20-$2.55 a barrel over Singapore
\nspot quotes on a cost-and-freight basis.<\/p>\n
Strong Asian demand continues to be led by India, which has
\nbought a total of 3.2 million tons between January and March.
\nIndia is expected to be a big buyer again for April.<\/p>\n
Thailand is seeking up to 50,000 tons for delivery in March,
\nafter buying at least 150,000 tons for February. Some traders
\nsaid Thailand might buy 300,000 tons for February and March after
\nproblems at two refineries soaked up diesel stocks.<\/p>\n
A dry spell in Sri Lanka has disrupted the country's
\nhydropower supply and forced it to seek 450,000 barrels in March
\nfor electric power generation, a Colombo source said.<\/p>\n
Traders said current high prices have led Indonesia to keep
\nits purchases discreet. But they said a scheduled shutdown at a
\nreformer and a hydrocracker at the Balikpapan refinery in March
\nmight boost Indonesia's imports for that month.<\/p>\n
Indonesia expects diesel imports for fiscal 1996\/1997
\n(April\/March) will rise by nine million barrels to 34.4 million
\nbarrels, working out to a monthly average of 2.8 million barrels,
\ncompared with 2.1 million in the previous year.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-diesel-prices-hit-5-year-high-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}