Singapore spot oil product prices up on Japan quake

Singapore spot oil product prices up on Japan quake

SINGAPORE (Reuter): Spot prices for refined oil products in
Singapore were mostly firmer yesterday after the powerful
earthquake which hit central Japan shut at least two oil
refineries and reduced operations at two others.

Traders were wary of supply disruptions but were also hesitant
about raising prices as no refinery is known to be damaged.

Traders said forward prices for gas oil jumped by at least 15-
20 cents a barrel above late Monday levels but sellers were
holding back, awaiting more news from Japan. The quake has
hampered communications with refineries in central Japan.

The February paper price for gas oil was last bid/offered late
Monday at US$20.70/20.80, they said.

High sulfur fuel oil swap offers rose by $1 a ton from Monday,
to $96.50 for February dates. Prices for second half January have
surged to $98/$100 from $95.75/$96.50.

"The news has not got to most traders yet, but those who want
to sell will ask for higher prices," an oil company trader said.

"If prices rise, it could be a short-term spike," one broker
said. "It would be natural to shut refineries on an earthquake,
but no refinery has been damaged."

Koa Oil Co Ltd said it has stopped operation of its 104,000
barrels per day (bpd) refinery in Osaka while Idemitsu Kosan KK
said it had shut down its 140,000 bpd Hyogo refinery.

Cosmo Oil Co Ltd and General Sekiyu said they have shut parts
of their refineries, with 110,000 bpd and 156,000 bpd capacity in
Sakai, Osaka, respectively.

Idemitsu said deliveries were still being made from the
refinery. General Sekiyu said deliveries from the refinery were
also stopped, but that there had been no damage or fires reported
at any of the units.