Gas oil price at 5-year high

Gas oil price at 5-year high

SINGAPORE (Reuter): Singapore gas oil traded yesterday at a five-year high of $30.00 per barrel on expectations of renewed buying interest from China and Indonesia, traders said.

Traders said Shell Singapore sold 150,000 barrels loading Oct. 27-31 to a Japanese trading house and another buyer was seen for a November cargo at US$29.85 per barrel.

The sale comes on talk of the emergence of limited buying from China. Traders said China bought at least three cargoes recently for arrival in end October or early November at between $227-$230 per ton cost-and-freight.

They also said majors in Hong Kong were importing increased volumes for barge-lot sales on ex-terminal basis to traders who are exporting to China.

The market also firmed on talk of new buying from Indonesia which is not operating its 200,000-bpd Cilacap crude unit at full capacity, traders said.

Ample jet fuel offers were seen for late October cargoes at $30.50 but buyers were targeting $29.75.