SINGAPORE, May 20 (Reuters) - Asian gasoil margins climbed on Monday as spot demand emerged
from Saudi Arabia while maintenance was being carried out at several refineries, industry
sources said.
The June gasoil crack rose 16 cents to $16.94 a barrel above Dubai crude, Reuters data
showed.
Saudi Aramco's trading arm is seeking up to 1.3 million barrels of gasoil in the spot market
for delivery in June through a tender instead of its usual private negotiations, industry
sources said.
Saudi demand is expected to increase to fuel power generation for cooling in summer and
ahead of the Muslim fasting month of Ramadan in early July, when transport fuel usage goes up.
State oil giant Saudi Aramco is likely import up to 8.9 million barrels of diesel in June,
according to traders, who expect at least the same volume or higher to be booked for July.
That level exceeds the estimated 6.7-7.5 million barrels shipped in May and is near the July
2011 record of 8.99 million.
"Aramco's expecting very high demand this summer, and they are stocking up before Ramadan.
The demand growth is higher compared to previous summers as there are several infrastructure
expansion projects ongoing," one middle distillates trader said.
Meanwhile, a pipe at the Saudi Aramco Mobil Refinery (Samref)'s 400,000 barrels per day
(bpd) plant in Yanbu caught fire last week, which reduced throughput at the refinery, traders
said.
Traders said production had to be cut because a vacuum distillation unit (VDU) pump could
have been affected, but this could not be confirmed by a company spokesman.
If the cutback continues, it could lead to a boost in diesel imports, a trader added.
The issue at Yanbu follows recent refinery maintenance, both planned and unplanned, in
India, which is also supporting diesel margins, traders added.
Meanwhile, China's marked reduction of diesel exports in May is expected to help slow the
supply glut in the region, traders said.
Once the government allocates export quotes to Chinese refiners, diesel exports could
significantly increase again, which could turn the market around quickly, they added.
India's Mangalore Refinery and Petrochemicals Ltd (MRPL) has sold a jet fuel cargo loading
July 4 to 6 to Vitol at a discount of between $1.20 and $1.55 a barrel to Singapore quotes,
traders said.
This was slightly lower than a cargo loading late June sold earlier and was the fourth
consecutive cargo that Vitol has purchased from MRPL. It was unclear where Vitol plans to ship
the cargoes.
* TENDERS: Aramco Trading Company is seeking 300,000 barrels of 500 ppm sulphur gasoil for
delivery into Jizan or Duba in June, 500,000 barrels for delivery into Jeddah in the first week
of June and 500,000 barrels for delivery into Ras Tanura in the second week of June. The tender
closed on May 20.
- Pakistan International Airlines Corp is seeking 199.44 million U.S. gallons of jet fuel
for delivery over July 2013 to June 2015. The tender closes on June 17 and is valid until June
30.
* SINGAPORE CASH DEALS: No trades reported.
MID-DISTILLATES
CASH ($/T) ASIA CLOSE Change % Change Prev RIC
Close
Spot Gas Oil 0.5% 116.05 0.67 0.58 115.38 (GO-SIN)
GO 0.5 Diff -2.00 0.10 -4.76 -2.10 (GO-SIN-DIF)
Spot Gas Oil 0.25% 117.41 0.73 0.63 116.68 (GO25-SIN)
GO 0.25 Diff -0.64 0.16 -20.00 -0.80 (GO25-SIN-DIF)
Spot Gas Oil 0.05% 118.72 0.61 0.52 118.11
GO 0.05 Diff 0.67 0.04 6.35 0.63
Spot Gas Oil 0.001% 119.98 0.50 0.42 119.48
GO 0.001 Diff 1.93 -0.07 -3.50 2.00
Spot Jet/Kero 117.04 0.77 0.66 116.27 (JET-SIN)
Jet/Kero Diff -0.16 0.14 -46.67 -0.30 (JET-SIN-DIF)
SWAPS ($/T) ASIA CLOSE Change % Change Prev PM (1130 GMT)
(0830 GMT) Close
Brent M1 104.35 0.59 0.57 103.76
Gasoil M1 118.00 0.60 0.51 117.40
Gasoil M1/M2 0.45 0.08 21.62 0.37
Gasoil M2 117.55 0.52 0.44 117.03
Regrade M1 -0.78 0.00 0.00 -0.78
Regrade M2 -0.22 -0.03 15.79 -0.19
Jet M1 117.22 0.60 0.51 116.62
Jet M1/M2 -0.11 0.11 -50.00 -0.22
Jet M2 117.33 0.49 0.42 116.84
Gasoil 500ppm-Dubai Cracks M1 16.94 0.16 0.95 16.78
Gasoil 500ppm-Dubai Cracks M2 16.90 0.05 0.30 16.85
Jet Cracks M1 16.19 0.19 1.19 16.00
Jet Cracks M2 16.76 0.06 0.36 16.70
East-West M1 3.60 0.72 25.00 2.88
East-West M2 -1.38 0.15 -9.80 -1.53
LGO M1 876.25 4.50 0.52 871.75
LGO M1/M2 -1.25 0.25 -16.67 -1.50
LGO M2 877.50 4.25 0.49 873.25
Crack LGO-Brent M1 13.44 -0.01 -0.07 13.45
Crack LGO-Brent M2 13.84 -0.04 -0.29 13.88
(Reporting by Jessica Jaganathan; editing by Jane Baird)
