Singapore oil products prices dip slightly
Singapore oil products prices dip slightly
SINGAPORE (Reuter): Singapore oil products prices came off on news that Singapore Refining Company has scheduled to bring back on-stream its largest crude distillation unit on Saturday, a day earlier than expected.
Company sources told Reuters the CDU was expected to operate at full capacity and achieve on-spec products by Monday. Traders said that the dip in prices will be short-lived as physical fundamentals remained bullish across the barrel.
On the gasoline market, 20,000 tones of low Ron material was heard sold recently by a Japanese trader into Vietnam for January delivery $3.50 a barrel over Singapore naphtha quotes.
The gas-oil market drifted lower on the SRC news but recovered slightly in the late evening with a trader seen hiking its bid for January 13-17 loading supplies.
An offer was seen at $26.10 for January 20-24 loading supplies but later came off to $26. Discussion were also heard that a parcel of 0.5 percent sulfur gas-oil were traded into Hong Kong at $1.60 over Singapore quotes for January delivery. Fob Singapore premiums were indicated at 50-60 cents over Singapore quotes for January loading supplies.
Kerosene prices were indicated at $35.20 c+f Japan for January deliveries.
The cold weather in North Asia and the lack of supplies were supporting prices, traders said.
High sulfur fuel oil prices softened on bearish sentiments, triggered by the SRC news. But the physical fundamentals remained bullish with demand still strong from China, India and Thailand.
In the low sulfur waxy residue market, bids remained firm with a buyer seen at a premium of $1.00 a barrel over Indonesia's formula for cracked material. But some buyers were expecting Indonesia to allocate extra supplies in January and preferred to delay their purchase.
Meanwhile, crudes oil prices in Asia were stable from post- API New York levels but activity was light with most traders away for the New Year holidays.
Traders said the firm post-API sentiment was triggered more by the unexpected draws in gasoline and crude stocks rather than the draw in distillates which were expected.
Cash February Brent was assessed around $18.34 per barrel against its IPE close at $18.27. March Brent was seen 50-53 cents below February. Traders pegged strong resistance for February Brent at $18.50-18.55 and call IPE to open up seven to 10 cents.
On SIMEX, February Brent was bid/asked at $18.28/18.35 against its previous close at $18.43. Tapis paper was stable, with January offered at $20 and February talked at $19.30/19.45.
While news that Singapore Refining Co's crude distillation unit will be resuming operations on December 30, a day earlier than expected, dampened the products market, it made no impact on the crudes.
Brunei's provisional January price is expected to be at $20.20 for Seria Light. Its official selling price for December was expected to be issued next week. Most February Malaysian crudes were said committed.
Tapis was nationally assessed at APPI Tapis +$0.80-$1.00 or around $20.30 per barrel.
Earlier, an Indonesian affiliate sold 200,000 barrels of Jan Bontang mix to a refiner at ICP plus 35/40 cents, while a U.S. refiner sold another 200,000 barrels to China at ICP plus 40/45 cents.