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Asia Distillates-Gasoil crack almost doubled since early April
SINGAPORE, June 2 (Reuters) - Asia's gasoil crack for
benchmark 500ppm grade rose 28 cents or 2.5 percent from the
previous session to nearly $12 a barrel, almost double the value
on April 6, as strong demand driven by a severe dry season
bolstered the market.
Other than a transport fuel, diesel/gasoil is used in power
generators and industrial equipment such as those in irrigation.
India, which has been struggling with an extreme drought
linked to an El Nino weather, saw its diesel imports in April
surged to a five year high of 510,000 tonnes after the fuel from
private companies became too expensive in the absence of
discounts on taxes and shipping.
But traders said the unusually high India's diesel imports
are not expected to last given they are weather related.
They added that India's key diesel importer, state-owned
Indian Oil Corp (Other OTC: INOIY - news) , may have resolved the tax and shipping costs
with the private refiners although this could not be
independently confirmed.
"The El Nino phenomenon is expected to last till June, after
which conditions should normalize," analysts at energy
consultancy FGE wrote.
Without the weather-induced incremental demand in the second
half of the year, Asia's gasoil surplus is expected widen again
to an average of 935,000 bpd in the second half of this year, up
77,000 bpd from a year ago, FGE added.
Middle distillates stocks in Singapore's land storage have
already crept back up to reach a seven-week high of nearly 11.9
million barrels in the week to June 1, official data showed.
China was a dominant exporter having shipped close to
260,000 tonnes of automotive diesel to Singapore, followed by
South Korea at about 143,000 tonnes, the data showed.
SINGAPORE CASH DEALS: A total of 600,000 barrels of gasoil
were traded in Singapore's cash market, the highest volume
traded in a single session in a week.
Hin Leong bought two 150,000-barrel 500ppm gasoil cargoes
for June 28 to July 2 loading, one from Lukoil (Other OTC: LUKOF - news) at a premium of
33 cents and the other from Shell (LSE: RDSB.L - news) at a premium of 30 cents.
Hin Leong bought a further 150,000 barrel of 500ppm gasoil
for June 26-30 loading from Unipec at a premium of 40 cents.
Lukoil sold a second 150,000-barrel cargo of 500ppm grade to
BP for June 22-26 loading at $58.20 a barrel.
MID-DISTILLATES
CASH ($/B) ASIA CLOSE Change % Change Prev RIC
Close
Spot Gas Oil 0.5% 57.66 0.72 1.26 56.94 (GO-SIN)
GO 0.5 Diff -0.10 0.05 -33.33 -0.15 (GO-SIN-DIF)
Spot Gas Oil 0.25% 57.76 0.72 1.26 57.04 (GO25-SIN)
GO 0.25 Diff 0.00 0.05 NA -0.05 (GO25-SIN-DIF
)
Spot Gas Oil 0.05% 58.11 0.77 1.34 57.34
GO 0.05 Diff 0.35 0.10 40.00 0.25 F> Spot Gas Oil 0.001% 59.26 0.67 1.14 58.59 GO 0.001 Diff 1.50 0.00 0.00 1.50 > Spot Jet/Kero 58.40 0.58 1.00 57.82 (JET-SIN) Jet/Kero Diff -0.20 0.05 -20.00 -0.25 (JET-SIN-DIF) For a list of derivatives prices, including margins, please double click the RICs below. Brent M1 Gasoil M1 Gasoil M1/M2 Gasoil M2 Regrade M1 Regrade M2 Jet M1 Jet M1/M2 Jet M2 Gasoil 500ppm-Dubai Cracks M1 Gasoil 500ppm-Dubai Cracks M2 Jet Cracks M1 Jet Cracks M2 East-West M1 East-West M2 LGO M1 LGO M1/M2 LGO M2 Crack LGO-Brent M1 Crack LGO-Brent M2 (Reporting by Seng Li Peng, editing by David Evans)
