RTRS:Asia Distillates- Gas oil cracks at one-month high
SINGAPORE, Oct 24 (Reuters) - The Asian gas oil market
strengthened further on Monday on the back of increased domestic
demand for heating oil in Japan and China.
The gas oil crack for November rose by 37 cents to a
one-month high of $17.92 a barrel over Dubai crude, Reuters data
showed.
Gas oil's November and December swaps gained $1.02 and $1.01
to $123.69 and $122.84 a barrel, respectively, with
November/December time spreads holding steady at 85 cents a
barrel.
Latest data on China show that the implied demand for
kerosene in September has gone up 5.6 percent from a month ago.
Earlier, China Oil, Gas and Petrochemicals report showed
that refined oil products inventories in the world's
second-largest oil consumer declined 7.5 percent from August,
marking its fourth decline in a row.
This suggests fuel inventories might have fallen to about
15.66 million tonnes at the end of last month, according to
Reuters calculations, based on earlier data from the
publication.
Of the total, diesel inventories at the end of last month
slumped 13 percent from end-August, kerosene stocks fell 3.8
percent and gasoline slipped 0.3 percent, the report said.
In Japan, kerosene stocks stayed near an almost three-year
peak last week, maintaining the current trend of refiners piling
up the heating fuel ahead of the coldest time of the year.
Kerosene stocks stood at 3.27 million kl, up 18.4 percent
from the same period a year earlier, after peaking at 3.37
million in the week to Oct. 1, their highest since December
2008.
TENDERS
In the Middle East, United Arab Emirate's Emarat has bought
36,000 tonnes of jet fuel from Vitol for Nov. 16-22 lifting at a
premium of about $2.60 a barrel to Middle East quotes, industry
sources said. Details of the company's previous tender are
unclear.
Meanwhile, Egyptian General Petroleum Corporation (EGPC) did
not award a tender seeking 33,000 tonnes of gas oil for delivery
over Oct. 23-25 due to high offers, industry sources said.
It is unclear if the company plans to reissue the tender.
* SWAPS OUTRIGHTS: Gas oil's November and December swaps
gained $1.02 and $1.01 to $123.69 and $122.84 a barrel
respectively.
- Jet fuel swaps for November increased 88 cents to
$126.19, while the November regrade, or the difference between
jet and diesel prices, fell 14 cents to $2.50 a barrel.
* CRACKS: Gas oil's crack for November was up by 37 cents to
$17.92 a barrel over Dubai crude.
- Jet fuel's November crack was up 23 cents to $20.42 a
barrel.
* EAST-WEST SPREADS: The exchange of futures for swaps or
EFS for November was up $7.60 to minus $12.01 a tonne.
* CASH DIFFERENTIALS: The premiums for the 0.5 percent and
0.25 percent sulphur gas oil fell by 5 cents to 45 cents and
$1.30 respectively while the 500 ppm sulphur gas oil premium
remained stable at $2.25 a barrel. Jet fuel cash differential
fell 4 cents to 17 cents a barrel.
* PHYSICAL OUTRIGHTS: Benchmark diesel with a maximum
sulphur content of 0.5 percent was up 89 cents to $124.13 a
barrel, while jet fuel was up 80 cents to $126.35 a barrel.
* TENDERS: Yemen's Aden Refinery Company is seeking two
cargoes of 40,000 tonnes each of either 0.5 percent or 1 percent
sulphur gas oil for delivery over Nov. 14-16 and Nov. 20-22. The
tender closes on Oct. 25.
* CASH DEALS: No jet deals, one gas oil deal.
- Hin Leong bought 150,000 barrels of 0.5 percent sulphur
gas oil from Shell for Nov. 9-13 lifting at a premium of 50
cents a barrel to Singapore quotes.
