SINGAPORE, May 21 (Reuters) - Asian gasoil margins spiked to a 6-week high
on Tuesday, rebounding from a two-year low in April, supported by a near-record
import from Saudi Arabia and spot demand within Asia, traders said.
The June gasoil crack rose 10 cents to $17.04 a barrel above Dubai crude,
highest since April 9 when it was at $17.12 a barrel, Reuters data showed.
Some spot demand from Sri Lanka supported gasoil high sulphur prices with
Ceylon Petroleum and Lanka IOC seeking cargoes for May and June delivery,
traders said.
Ceylon Petroleum's spot requirement was prompt likely due to a recent brief
shutdown of its refinery, and as its term contract with PetroChina concluded in
May, they added.
The 0.25 percent sulphur gasoil cash differential rose 16 cents to a
discount of 48 cents a barrel to Singapore quotes, highest since December 21
when it was at minus 45 cents a barrel, Reuters data showed.
Significantly lower exports from China for May are also adding to the spike
in differentials, traders added.
Saudi Aramco Trading Company likely bought 1.3 million barrels of 500 ppm
sulphur gasoil for delivery in June from oil majors likely to include Shell and
BP, industry sources said.
Saudi Aramco's trading arm likely paid premiums of between $4 and $4.50 a
barrel above Middle East quotes for the cargoes to be delivered into the Gulf
ports and premiums between $5.80 and $6.30 a barrel for cargoes to be delivered
into Red Sea ports, the sources added, though this could not be confirmed.
The spot levels are much higher than term premiums negotiated by the company
earlier this year, the sources added.
The company likely issued a tender instead of buying through private
negotiations due to tight supply in India and within the Gulf, traders said.
India's Reliance, which is a major supplier of gasoil to Saudi Arabia,
likely had lower export volumes due to a spike in domestic demand and a refinery
maintenance at a crude distillation unit at its Jamnagar refinery.
"It seems the market is dry for oil. Bapco, Reliance and Samref did not have
anything prompt to show for June so Aramco Trading Company had to issue a
tender," a Gulf-based trader said.
Saudi Aramco has also been plagued with refinery issues, which has also
been contributing to higher imports, the trader added.
Elsewhere in the Gulf, Tasweeq has finalised its term contract to sell jet
fuel for July to December loading to an oil major, industry sources said.
The alpha was likely set at around 40 cents a barrel, about 10 cents higher
than its previous term, an industry source said, though this could not be
confirmed.
* TENDERS: Ceylon Petroleum is seeking a combination cargo of 70,000 barrels
of 0.25 percent sulphur gasoil and 240,000 barrels of 90-octane gasoline for May
30 to 31 delivery into Colombo. The tender closed on May 21 and is valid until
May 24.
- Lanka IOC is seeking a combination cargo of 20,000 tonnes of 0.25 percent
sulphur gasoil, 4,500 tonnes of marine gasoil, 10,000 tonnes of 90-octane
gasoline and 6,000 tonnes of 95-octane gasoline. The tender closed on May 20 and
is valid until May 22.
* SINGAPORE CASH DEALS: No deals reported.
MID-DISTILLATES
CASH ($/T) ASIA CLOSE Change % Change Prev RIC
Close
Spot Gas Oil 0.5% 116.64 0.59 0.51 116.05 (GO-SIN)
GO 0.5 Diff -1.80 0.20 -10.00 -2.00 (GO-SIN-DIF)
Spot Gas Oil 117.96 0.55 0.47 117.41 (GO25-SIN)
0.25%
GO 0.25 Diff -0.48 0.16 -25.00 -0.64 (GO25-SIN-DIF)
Spot Gas Oil 119.19 0.47 0.40 118.72
0.05%
GO 0.05 Diff 0.75 0.08 11.94 0.67
Spot Gas Oil 120.23 0.25 0.21 119.98
0.001%
GO 0.001 Diff 1.78 -0.15 -7.77 1.93
Spot Jet/Kero 117.42 0.38 0.32 117.04 (JET-SIN)
Jet/Kero Diff -0.15 0.01 -6.25 -0.16 (JET-SIN-DIF)
SWAPS ($/T) ASIA CLOSE Change % Change Prev PM (1130 GMT)
(0830 GMT) Close
Brent M1 104.39 0.04 0.04 104.35
Gasoil M1 118.40 0.40 0.34 118.00
Gasoil M1/M2 0.50 0.05 11.11 0.45
Gasoil M2 117.90 0.35 0.30 117.55
Regrade M1 -0.82 -0.04 5.13 -0.78
Regrade M2 -0.19 0.03 -13.64 -0.22
Jet M1 117.58 0.36 0.31 117.22
Jet M1/M2 -0.13 -0.02 18.18 -0.11
Jet M2 117.71 0.38 0.32 117.33
Gasoil 17.04 0.10 0.59 16.94
500ppm-Dubai
Cracks M1
Gasoil 16.99 0.09 0.53 16.90
500ppm-Dubai
Cracks M2
Jet Cracks M1 16.23 0.04 0.25 16.19
Jet Cracks M2 16.80 0.04 0.24 16.76
East-West M1 3.33 -0.27 -7.50 3.60
East-West M2 -1.39 -0.01 0.72 -1.38
LGO M1 878.75 2.50 0.29 876.25
LGO M1/M2 -1.00 0.25 -20.00 -1.25
LGO M2 879.75 2.25 0.26 877.50
Crack LGO-Brent 13.70 0.26 1.93 13.44
M1
Crack LGO-Brent 13.94 0.10 0.72 13.84
M2
(Reporting by Jessica Jaganathan; editing by Jason Neely)
