RTRS:Asia Distillates-Gas oil strengthens on Indonesian demand
SINGAPORE, Sept 15 (Reuters) - Asia's gas oil market extended its gains on
Thursday, with the product's prompt timespread and cash differential hitting
over five-month peaks on strong Indonesian demand.
Gas oil's September/October contract edged up for a fifth straight session
to 55 cents a barrel by 0830 GMT, up 5 cents, while the cash premium doubled to
50 cents a barrel.
Traders said Indonesia had bought up to 5 million barrels of gas oil with
0.35 percent sulphur for September delivery and was currently seeking October
cargoes.
"Indonesia is pulling everything and the supply is in the hands of one or
two guys," said a Singapore-based distillates trader.
Hin Leong's relentless buying of gas oil cargoes continued on Thursday, as
it picked up another 300,000 barrels at higher price levels. The Singapore
trader has now bought around 2.35 million barrels of gas oil this month,
potentially to feed Indonesian demand, traders said.
Gas oil's crack spreads also rose for a second session to end near $17 a
barrel by 0830 GMT, Reuters data showed.
The market strengthened despite data showing a rise in Singapore middle
distillate inventories over the past week due to heavy Korean and Japanese
imports. Onshore diesel and jet stocks climbed 7.2 percent to 12.85 million
barrels in the week ended Sept. 14, government data showed on Thursday.
[O/Sing1]
In the swaps market, at least 100,000 barrels of the gas oil September swap
were done at $123.10 a barrel, down from 200,000 barrels a day earlier. Another
450,000 barrels of the September/October timespread changed hands at 50 cents a
barrel.
* SWAPS OUTRIGHTS: Gas oil's September swap rose $1.00 to $123.20 a barrel,
while the October swap gained 95 cents to $122.65 a barrel.
- Jet fuel swaps for September also rose $1.00 to $124.10, while the
September regrade, or the difference between jet and diesel prices, was steady
at 90 cents for a fourth session.
* CRACKS: Gas oil's crack for October rose 44 cents to $16.96 a barrel over
Dubai crude.
- Jet fuel's October crack climbed 42 cents to $18.69 a barrel.
* CASH DIFFERENTIALS: The differential for gas oil with 0.5 percent sulphur
rose 25 cents to a premium of 50 cents a barrel, while the premium for the 0.25
percent and 0.05 percent sulphur grades also gained 25 cents to $1.25 and $2.35,
respectively.
- Jet fuel's cash discount climbed 10 cents to 40 cents.
* PHYSICAL OUTRIGHTS: Benchmark diesel with a maximum sulphur content of 0.5
percent was $1.10 higher at $123.35 a barrel, while jet fuel rose $1.05 to
$123.90.
* CASH DEALS: Two 0.5 percent sulphur gas oil deals, two jet fuel trades.
- Hin Leong bought 150,000 barrels of gas oil from Brightoil for Oct 11-15
lifting at September average prices, equivalent to a premium of 50 cents to
Singapore spot quotes.
- The Singapore trader bought another 150,000 barrels of gas oil from Shell
for Oct 2-6 lifting at a premium of 40 cents a barrel.
- Shell sold 150,000 barrels of jet fuel to BP at 40 cents a barrel below
September average prices for Sep 30-Oct 4 loading.
- BP bought another 150,000 barrels of jet fuel for Sep 30-Oct 4 lifting at
25 cents a barrel below September average prices.
