Singapore oil products firmer
Singapore oil products firmer
SINGAPORE (Reuter): Singapore oil products spot prices edged
up yesterday on news that a fire which started on Tuesday damaged
seven tanks holding kerosene, naphtha and aviation fuel. The
refinery was unaffected but was shut as a precaution.
The jet fuel market was active with two deals done. A refiner
sold 120,000 barrels to Indonesia for second-half November
loading at 20 cents a barrel over Singapore quotes fob. Another
240,000 barrels was heard traded around 15 cents premium fob.
Indonesia has so far bought about 500,000 barrels for November.
Early this week, Indonesia bought 240,000 barrels from a major
at a 10-cent premium for early November loading fob.
Sellers said current jet fuel offers for mid-to-end-November
loading would be 20-25 premiums and is set to firm if Indonesia
raised its November imports to cover shortages. Two gas oil
offers were heard at US$20.35 a barrel fob for first half
November. A second-half November cargo was bid at $20.25.
The market got a boost from the Cilacap fire but tapered off
over uncertainties about Indonesia's extra demand. High local
stocks continued to weigh gasoline prices.
A bid for Nov. 20-22, 95 octane unleaded were at $19.90 fob
while an offer was at $20. Mobil would be shutting its 38,000
barrels a day reformer here this weekend or early next week for
checks and repairs.
The shutdown is unlikely to affect the gasoline market as the
unit produces reformate. The refiner recently bought 100,000
barrels of 97 octane reformate at a $1 premium fob Malacca.
Naphtha prices were stable. Bullishness was capped despite
expectations of an export disruption from Indonesia if domestic
supplies are kept for internal use following the Cilacap
shutdown. But upside would be limited as Indonesian exports had
been limited.
Fuel oil prices firmed on the Cilacap news but Indonesian
demand has not emerged. Bids were seen at $91.50 for early
November loading. MidEast cargoes may head eastwards as markets
in the west weakens.
High sulphur fuel oil prices firmed. A trader was heard to
have purchased close to 600,000 tons of fuel oil last month for
deliveries to Indonesia this month.
This would be enough to cover shortfall in supplies caused by
the refinery shutdown, said a trader. But talks are underway to
divert the cargoes to other locations because of the damaged
storage tanks at Cilacap.
Several bids were seen at $91.50 for early November loading.
It was heard that MidEast cargoes may head towards the Far East
as markets in the west weakens.