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.