SINGAPORE, April 22 (Reuters) - Asian gasoil margins fell on
Monday as the market appeared flooded with excess Chinese
cargoes while demand remained weak, industry sources said.
The May gasoil crack slipped 23 cents to $14.91 a barrel
above Dubai crude, Reuters data showed.
China exported more than 400,000 tonnes of diesel in March,
its largest volumes in at least a year, the latest customs
figures showed.
The country is expected to export a similar volume for
April, which is also pushing margins to near a one-year low,
industry sources have said.
Taiwan's Formosa Petrochemicals Corp has offered an
ultra-low sulphur diesel for loading in May, its first such
cargo in three months, also contributing to supply in the
market, industry sources said.
It was not expected to offer any more spot cargoes for May
as the company is undergoing partial planned maintenance at its
refinery that is expected to be completed in the first half of
June.
But the refinery might be adjusting its inventory amid low
demand for the fuel from Europe as arbitrage economics to send
the cargoes west are currently not viable, the sources added.
In the Singapore trading period, oil major BP extended its
gasoil purchases on Monday, picking up 600,000 barrels of the
fuel, which helped to prevent margins from sliding further,
industry sources said.
Monday's purchases brought the total tally of the company's
500 ppm sulphur gasoil procurement to 5.25 million barrels in
April, even as Asian demand for the fuel remains weak,
signalling bullish trading by the company, traders said.
A top oil trader has also snapped up 2.25 million barrels of
gasoil in April in Singapore.
"Those guys are brave to load up on gasoil as cracks and
flat prices plummet," a Singapore-based industry source said.
At least five long-range vessels have been provisionally
fixed by Vitol and BP to carry gasoil from Singapore to the Red
Sea, traders and shipbrokers said.
A dip in Singapore differentials due to the weak regional
demand has made it economical to ship cargoes from the Southeast
Asian country to the Red Sea, industry sources said.
Vitol and BP are also likely to be meeting demand from East
African countries and from Iraq, traders added.
"The demand for gasoil in East Africa is not as bad as in
Europe or Asia as they have a basic requirement for mining," a
North Asian trader said.
"BP seems to have a lot of east-west length," the source
added, referring to a derivative traders use to hedge movement
of physical cargoes from Asia to outside the region.
In the Middle East, gasoil demand from Saudi Arabia has been
climbing with the country set to import about 7 million barrels
of the power generation fuel in April, up 40 percent from
previous months, a source familiar with the market said.
This could increase in coming months as temperatures rise,
increasing demand for the fuel, used to power air-conditioners,
they added.
* TENDERS: Formosa has offered either 300,000 barrels of 10
ppm sulphur diesel for May 1-15 loading or 500,000 barrels of
the same grade for May 14 to 18 loading. The tender closes on
April 23, with same-day validity.
* SINGAPORE CASH DEALS: No jet deals, four gasoil trades.
- Glencore sold 150,000 barrels of 500 ppm sulphur gasoil
for May 12 to 16 loading to BP at $112.30 a barrel.
- Glencore sold 150,000 barrels of 500 ppm sulphur gasoil
for May 12 to 16 loading to BP at $112.30 a barrel.
- Unipec sold 150,000 barrels of 500 ppm sulphur gasoil for
May 7 to 11 loading to BP at $112.30 a barrel.
- Unipec sold 150,000 barrels of 500 ppm sulphur gasoil for
May 17 to 21 loading to BP at $112.30 a barrel.
MID-DISTILLATES
CASH ($/T) ASIA CLOSE Change % Change Prev RIC
Close
Spot Gas Oil 0.5% 109.71 -0.29 -0.26 110.00 (GO-SIN)
GO 0.5 Diff -2.65 -0.10 3.92 -2.55 (GO-SIN-DIF)
Spot Gas Oil 0.25% 111.01 -0.29 -0.26 111.30 (GO25-SIN)
GO 0.25 Diff -1.35 -0.10 8.00 -1.25 (GO25-SIN-DIF)
Spot Gas Oil 0.05% 112.34 -0.26 -0.23 112.60
GO 0.05 Diff -0.02 -0.07 -140.00 0.05
Spot Gas Oil 114.31 -0.04 -0.03 114.35
0.001%
GO 0.001 Diff 1.95 0.15 8.33 1.80
Spot Jet/Kero 111.79 -0.29 -0.26 112.08 (JET-SIN)
Jet/Kero Diff -0.37 -0.05 15.63 -0.32 (JET-SIN-DIF)
SWAPS ($/T) ASIA CLOSE Change % Change Prev PM (1130 GMT)
(0830 GMT) Close
Brent M1 99.56 -0.09 -0.09 99.65
Gasoil M1 112.36 -0.21 -0.19 112.57
Gasoil M1/M2 -0.06 0.13 -68.42 -0.19
Gasoil M2 112.42 -0.34 -0.30 112.76
Regrade M1 -0.19 -0.07 58.33 -0.12
Regrade M2 0.08 0.06 300.00 0.02
Jet M1 112.17 -0.28 -0.25 112.45
Jet M1/M2 -0.33 -0.02 6.45 -0.31
Jet M2 112.50 -0.28 -0.25 112.78
Gasoil 14.91 -0.23 -1.52 15.14
500ppm-Dubai
Cracks M1
Gasoil 15.56 -0.29 -1.83 15.85
500ppm-Dubai
Cracks M2
Jet Cracks M1 14.72 -0.31 -2.06 15.03
Jet Cracks M2 15.64 -0.22 -1.39 15.86
East-West M1 3.33 1.26 60.87 2.07
East-West M2 0.03 0.29 -111.54 -0.26
LGO M1 833.75 -2.75 -0.33 836.50
LGO M1/M2 -3.75 0.00 0.00 -3.75
LGO M2 837.50 -2.75 -0.33 840.25
Crack LGO-Brent M1 12.86 -0.28 -2.13 13.14
Crack LGO-Brent M2 13.53 -0.23 -1.67 13.76
(Reporting by Jessica Jaganathan; Editing by Clarence
Fernandez)
