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.