S'pore oil products market gets mixed response from fuel oil rise
S'pore oil products market gets mixed response from fuel oil rise
SINGAPORE (Reuter): Singapore oil products market were mixed
with fuel oil continuing to rise, while gas oil recovering later
in the day after recent falls, traders said yesterday.
Jet fuel remained firm with demand emerging from China. A
Chinese buyer was making enquiries for March cargoes, while
Taiwan is seeking a second-half April cargo. Sri Lanka has also
issued a tender to buy 65,000 barrels of end-March jet fuel to be
combined with 145,000 barrels of diesel.
Two majors were seen supporting the jet fuel market, traders
said. Sri Lanka's diesel demand for March is close to 600,000
barrels to meet power stations demand due to the prevailing
hydropower shortage.
India bought 18 diesel cargoes totaling 750,000 tons in its
tender for April. Traders said even though this is below the
expected 900,000 tons, it was still way above the 450,000 tons
purchased in April last year. With this award, India's total
imports for January-April were around four million tons. A U.S
trader has been active in the diesel market lately.
The trader earlier bought a cargo from a MidEast refiner at 80
cents a barrel over Singapore quotes fob basis for March lifting,
and another cargo from a local refiner at close to 90 cents
premium. The trader later sold one cargo to Indonesia at an 85-
cent premium and another cargo at $26.25 for mid-March lifting
fob.
Fuel oil prices remained supported by fresh regional demand.
Taiwan issued a tender to buy 80,000 tons of 0.5 percent sulphur
fuel oil for May 6-15 delivery, 38,000 tons of similar grade for
May 1-20 and 38,000 tons of one percent for delivery April 20-May
1.
Traders said there are emerging demand from Thailand,
Philippines, China and Hong Kong. Pockets of demand were also
seen from Japan. There is a lack of cargoes coming from other
regions as the arbitrage in the Mediterranean and U.S Gulf Coast
have closed, helping to prop up prices here. Offers of 180-cst
were seen at $113 for end March loading cargoes by majors, with
dids at $111.