Asian gas, oil, diesel firmer in quiet market, say traders
Asian gas, oil, diesel firmer in quiet market, say traders
SINGAPORE (Reuter): Singapore middle distillates prices rose
on firmer crude values yesterday and expectations of stronger
regional demand which could absorb the persistent oversupplies,
traders said.
They said Indonesia could be a big buyer in August --
projected at around six million barrels -- higher than their July
purchases of about five million.
Indonesia normally imports around four million barrels a
month, traders said.
The additional demand in August was attributed to a scheduled
shutdown at a 200,000-barrel-per-day (bpd) crude unit for a month
from July 10 and a 100,000-bpd unit from August 13 for about 35
days.
Industry sources said the shutdowns were expected to start as
scheduled, and even if there were to be a delay it would only be
for a few days.
Indonesia was also heard to have bought a July lifting gas oil
parcel at a steep discount of 90 cents per barrel to Singapore
spot quotes, free-on-board (fob) basis. But traders noted that
the cargo was only 10,000 tons and did not reflect current market
levels.
They said the level for end-July barrels should be around a
20-cent discount, fob while prompt barrels would be between 50
and 70 cents discounts.
Traders said a US major late last week sold 100,000 barrels of
gas oil to a trader at a 10-cent discount for July 21-25 lifting
fob.
Sellers dominated the physical gas oil market with three
sellers offering at firm levels of $22.40 per barrel for July 15-
19 lifting fob, facing no buyers.
A 150,000 barrel parcel was also offered at $165 per ton, fob
basis ($22.15 per barrel) for the same timing.
On Friday, a deal was done for the same period at $21.70 per
barrel, fob Singapore, which was 70 cents below Thursday's lowest
offer.
Traders however noted that India would not contribute to the
current stronger sentiment on the spot market, as state-owned
Indian Oil Corp (IOC) were expected to limit its August purchases
to less than 400,000 tons.
They said this could be because IOC had taken large volumes in
July amounting to 855,000 tons, while the current low prices
could prompt India to take more cargoes in its term tender.