SINGAPORE, May 14 (Reuters) - Asian gasoil cash premiums rose on Tuesday as traders eyed
refinery run cuts both in Asia and in Europe, industry sources said.
The cash premium for the benchmark 500 ppm sulphur gasoil climbed 5 cents to 70 cents a
barrel above Singapore quotes, Reuters data showed.
Several refineries in Japan and South Korea have trimmed fuel output in May, on top of
capacity already shut for maintenance, as they cope with weak margins and low demand, trade
sources have said.
At least five refineries in Northwest Europe and the Mediterranean have also been reducing
output since the second half of April due to weak margins, market sources said.
Expectations for reduced oil product supply and increased demand for the summer season in
the northern hemisphere are likely to push up premiums, traders said.
"It's more supply-driven strength I believe," a Singapore-based trader said.
India's Mangalore Refinery and Petrochemicals will shut a 144,000 barrels per day (bpd)
crude unit, nearly half of its overall capacity, for maintenance this weekend for up to 25 days,
two sources with knowledge of the plan said on Tuesday.
But a source said the shutdown of the crude unit will not impact the refinery's export
commitment and supplies to local markets.
Sri Lanka's sole refinery faces closure this week for up to four days over a delayed crude
oil delivery that coincides with plans for routine maintenance, officials said on Tuesday.
The firm has not requested prompt gasoil or jet fuel, but its requirement could go up should
the shutdown be prolonged, traders said.
Abu Dhabi National Oil Company (ADNOC) has invited term buyers to submit bids for its July
2013 to June 2014 jet fuel term contract, traders said.
Details such as volumes and prices are not available yet, but are likely to be about 10 to
20 cents higher or lower than the current jet fuel term contract, a Gulf-based trader said.
"The market is weak, but ADNOC can load LR 2 vessels," the trader added referring to the
larger long-range ships that can provide better freight economics for traders.
The refiner finalised exports of jet fuel cargoes for its January-to-December term contract
at a premium of $2.35 a barrel above Middle East quotes and $2.05 a barrel for its term contract
for July 2012 to June 2013.
Spot demand from Egyptian General Petroleum Corp (EGPC) also supported high sulphur gasoil.
The company is seeking 175,000 tonnes of the oil product for July and for delivery into the
Sokhna port for the first time, industry sources said.
The Dubai Ports facility at Ain Sokhna, on the Red Sea near the Suez canal's southern
entrance, has expanded considerably.
* TENDERS: India's Mangalore Refinery and Petrochemicals has offered 40,000 tonnes of jet
fuel for July 4 to 6 loading. The tender closes on May 16 and is valid until May 17.
- Egyptian General Petroleum Corp is seeking 175,000 tonnes of 0.1 percent sulphur gasoil
for July delivery into Suez and Sokhna ports in a tender that closes on May 21.
* SINGAPORE CASH DEALS: No gasoil deals, two jet fuel deals.
- BP bought 100,000 barrels of jet fuel for May 29 to June 2, loading from Shell at a
discount of 10 cents a barrel to Singapore quotes.
- Morgan Stanley sold 245,000 barrels of jet fuel for May 29 to June 2 loading to China
Aviation Oil at a discount of 10 cents a barrel to the average of May 27 to May 31 Singapore
quotes.
MID-DISTILLATES
CASH ($/T) ASIA CLOSE Change % Change Prev RIC
Close
Spot Gas Oil 0.5% 114.32 -0.25 -0.22 114.57 (GO-SIN)
GO 0.5 Diff -2.10 0.05 -2.33 -2.15 (GO-SIN-DIF)
Spot Gas Oil 0.25% 115.62 -0.25 -0.22 115.87 (GO25-SIN)
GO 0.25 Diff -0.80 0.05 -5.88 -0.85 (GO25-SIN-DIF)
Spot Gas Oil 0.05% 117.12 -0.25 -0.21 117.37
GO 0.05 Diff 0.70 0.05 7.69 0.65
Spot Gas Oil 0.001% 118.72 -0.25 -0.21 118.97
GO 0.001 Diff 2.30 0.05 2.22 2.25
Spot Jet/Kero 115.31 -0.11 -0.10 115.42 (JET-SIN)
Jet/Kero Diff -0.20 0.01 -4.76 -0.21 (JET-SIN-DIF)
SWAPS ($/T) ASIA CLOSE Change % Change Prev PM (1130 GMT)
(0830 GMT) Close
Brent M1 102.65 -0.39 -0.38 103.04
Gasoil M1 116.81 -0.27 -0.23 117.08
Gasoil M1/M2 0.65 0.07 12.07 0.58
Gasoil M2 116.16 -0.34 -0.29 116.50
Regrade M1 -1.39 0.07 -4.79 -1.46
Regrade M2 -0.60 0.19 -24.05 -0.79
Jet M1 115.42 -0.20 -0.17 115.62
Jet M1/M2 -0.14 -0.05 55.56 -0.09
Jet M2 115.56 -0.15 -0.13 115.71
Gasoil 500ppm-Dubai Cracks M1 16.56 -0.10 -0.60 16.66
Gasoil 500ppm-Dubai Cracks M2 16.62 -0.12 -0.72 16.74
Jet Cracks M1 15.96 0.09 0.57 15.87
Jet Cracks M2 16.51 0.05 0.30 16.46
East-West M1 5.39 -1.54 -22.22 6.93
East-West M2 -0.04 -1.23 NA 1.19
LGO M1 860.00 -1.00 -0.12 861.00
LGO M1/M2 -2.75 0.00 0.00 -2.75
LGO M2 862.75 -1.00 -0.12 863.75
Crack LGO-Brent M1 12.79 0.26 2.08 12.53
Crack LGO-Brent M2 13.30 0.11 0.83 13.19
(Reporting by Jessica Jaganathan; editing by Jane Baird)
