SINGAPORE, July 23 (Reuters) - Asian gasoil's crack spread
climbed above $18 a barrel on Monday, the first time since
February, as demand continued to support prices, traders said.
The crack climbed to $18.41 a barrel, up 54 cents on the
day.
Lower crude oil prices could boost demand further where
supply has already been considered as tight with refinery
shutdowns in Singapore and Japan, traders said.
Sri Lanka's Ceylon Petroleum Corp (Ceypetco) has bought a
combination 0.25 percent sulphur gasoil and jet fuel cargo from
BB Energy for delivery in August 11 at premiums of $3.375 and
$2.38 a barrel respectively to Singapore quotes, slightly firmer
than a July cargo bought from Swiss Singapore earlier.
Kenya also emerged in the spot market seeking 251,000 tonnes
of jet fuel and gasoil for delivery in August and September,
slightly more volumes than its previous tender.
Capping gains in diesel margins, however, China's June
imports for light diesel fuel showed a 68.3 percent decline from
a year ago pointing to a drop in domestic demand, official
customs figures showed.
India's Mangalore Refinery and Petrochemicals Ltd (MRPL)
offered its third jet fuel cargo and third high sulphur gasoil
cargo for August, higher than the usual one gasoil cargo and 2-3
jet fuel cargoes it offers every month.
This could provide some relief in a market where supply of
the high sulphur gasoil, especially, is very tight as refineries
switch to production of the more expensive cleaner fuels.
More demand might be seen from Jordan and Egypt after the
Egyptian pipeline built to carry natural gas to Israel and
Jordan was attacked for the 15th time since the start of the
uprising in early 2011.
These countries turn to the more expensive diesel for power
generation due to the disruption in gas supplies.
In the Middle East, Bahrain Petroleum Co (Bapco) is still
negotiating the sale of a jet fuel cargo for August 12-15
loading, industry sources said.
Bapco wants a premium of $2.50 a barrel above Middle East
quotes while buyers are asking for $2.30 a barrel premium, they
said.
Strong airline demand from within the Gulf due to increased
travel during summer and the Muslim fasting month of Ramadan is
contributing to higher jet prices in the Middle East, they
added.
Tasweeq has sold a late-August loading cargo to an oil major
at a price equivalent to $2.30 a barrel to Middle East quotes,
traders said. But this could not be confirmed.
* TENDERS: Kenya is seeking 50,000 tonnes of jet fuel for
August 19-21 delivery and 59,000 tonnes for September 22-24
delivery.
It is also seeking 60,000 tonnes of 500 ppm sulphur gasoil
for September 2-4 delivery and 63,000 tonnes for September 19-21
delivery into Kipevu Oil Terminal as well as 19,000 tonnes for
August 15-18 delivery into Shimanzu Oil Terminal. The tender
closes on July 24 and is valid until July 25.
- MRPL has offered 36,000 tonnes of jet fuel for August
26-28 loading and 40,000 tonnes of 0.5 percent sulphur gasoil
for August 24-26 loading. Both tenders close on July 26 and are
valid until July 27.
* CASH DEALS: No jet deals, one gasoil trade.
- Vitol bought 150,000 barrels of 500 ppm sulphur gasoil for
August 10-14 loading from PetroChina at a premium of $3 a barrel
to Singapore quotes.
MID-DISTILLATES
CASH ($/T) ASIA CLOSE Change % Change Prev RIC
Close
Spot Gas Oil 0.5% 118.80 -3.27 -2.68 122.07 GO-SIN
GO 0.5 Diff 0.85 0.05 6.25 0.80 GO-SIN-DIF
Spot Gas Oil 0.25% 120.15 -3.27 -2.65 123.42 GO25-SIN
GO 0.25 Diff 2.20 0.05 2.33 2.15 GO25-SIN-DIF
Spot Gas Oil 0.05% 120.95 -3.32 -2.67 124.27 GO005-SIN
GO 0.05 Diff 3.00 0.00 0.00 3.00 GO005-SIN-DIF
Spot Gas Oil 122.32 -3.25 -2.59 125.57 GO10-SIN
0.001%
GO 0.001 Diff 4.37 0.07 1.63 4.30 GO10-SIN-DIF
Spot Jet/Kero 119.31 -3.27 -2.67 122.58 JET-SIN
Jet/Kero Diff 0.41 0.07 20.59 0.34 JET-SIN-DIF
