Gas oil prices up despite stock build<\/p>\n
SINGAPORE (Reuter): Singapore gas oil market continued its
\nrelentless rally yesterday as another 600,000 barrels were traded
\ndespite initial concerns over the huge build in Singapore's
\nmiddle-distillate stocks, traders said.<\/p>\n
\"Indonesia has been buying like nothing,\" one trader said.
\n\"They bought two cargoes today.\"<\/p>\n
One of Indonesia's affiliates bought one cargo a day earlier.<\/p>\n
Traders said the fact that Indonesia's two affiliates bought
\nopenly in the Singapore market, which is an unusual strategy for
\nthe normally reticent buyers, might indicate that they require a
\nlot more than initially believed.<\/p>\n
Traders said the Indonesian buyers might have thought that
\nprices would remain at the low US$22.10-level that was traded on
\nTuesday and the 55-cent discount to Singapore spot quotes that
\none of them managed to get on Wednesday.<\/p>\n
But Indonesia's sudden emergence excited the market, which had
\nbeen undergoing a relatively slow period due to the continued
\nabsence of China.<\/p>\n
China's absence and the high stocks of jet fuel contributed
\nsignificantly to a 1.266-million-barrel build in Singapore's
\nmiddle distillate stocks to 13.051 million barrels for the week
\nended Sept. 3.<\/p>\n
But after a brief reticence after the stock data was reported,
\nwhich saw gas oil swaps values trimming off a few cents from its
\nearlier highs, the physical market brushed off the high stocks to
\ntrade above the $23.00 mark.<\/p>\n
One of the Indonesian affiliates bought a cargo from a
\nEuropean major at $23.30 per barrel for Sept. 19-23 lifting free-
\non-board (fob) basis. A second Indonesian affiliate bought from
\nanother European major at the same price for Sept. 20-24 lifting.<\/p>\n
These deals are 40 cents higher than the highest-priced trade
\non Wednesday.<\/p>\n
The first European major then sold to another major at a high
\n$23.70 for Sept. 26-30, and immediately locked in a 20-cent
\nprofit when the former bought at $23.50 from a Singapore trader
\nfor the same lifting period, traders said.<\/p>\n
Jet fuel saw only sellers offering as high as $22.50 for late
\nSeptember lifting. But traders said that after the $21.75 deal on
\nWednesday, buyers were not impressed with the higher levels.<\/p>\n
Traders said those holding jet fuel in storage are still bent
\non reaping a profit due a possible increase in demand in the
\nfourth quarter.<\/p>\n
But they said that this also carried a risk if demand did not
\npick up especially if the winter in Northeast Asia proves to be a
\nmild one.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/gas-oil-prices-up-despite-stock-build-1447893297",
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