RTRS:Asia Distillates-Jet's premium over gas oil climbs
SINGAPORE, Oct 17 (Reuters) - Jet fuel's premium over gas oil for cargoes
loading in Singapore climbed more than $1 on Monday on the back of BP's purchase
of a cargo for November.
The physical regrade, or difference between jet and gas oil cargo prices,
increased by $1.70 to $3.03 a barrel from Friday's close, Reuters data showed.
Cash differentials for jet fuel tripled to 30 cents a barrel after Shell
sold 150,000 barrels of jet fuel to BP at a premium of 30 cents a barrel above
the average prices of Nov. 2-9 Singapore quotes.
Including this purchase, BP has bought at least 650,000 barrels of jet fuel
in October, which has supported jet fuel prices, trading sources said.
"They might be arbing jet out to Europe...but I think (the prices) are too
volatile, so won't read too much into it," said a middle distillates trader.
With the exchange of futures for swaps or EFS Falling $14.30 to minus $36.03
a tonne, traders in Asia have been expected to fix vessels to Europe.
Shipping data showed at least 98,000 tonnes of jet fuel and 80,000 tonnes of
gas oil have been fixed from either the Middle East or Asia to Europe.
TERM TENDER
The first of the term contracts for 2012 kicked off with Iraq's State Oil
Marketing Organisation (SOMO) issuing a tender to buy 773,000 tonnes of 0.1
percent gas oil and 292,000 tonnes of jet fuel for delivery into Khor Al Zubair
terminal over January to June 2012.
Meanwhile, Yemen's Aden Refinery has not yet awarded a gas oil and jet
tender that closed over the weekend, industry sources said. This could not be
confirmed.
Kenya is seeking 74,000 tonnes of jet, 165,720 tonnes of gas oil and 79,217
tonnes of gasoline, more than usual volumes, trading sources said.
"The volumes look more than usual... it looks like they are seeking least
one additional parcel of jet," said a trader familiar with the Kenyan oil
market.
This is expected to provide some support to the gas oil and jet fuel prices
in the Middle East.
* SWAPS OUTRIGHTS: Gas oil's November and December swaps climbed by $1.81 and
$2.11 to $124.51 and $123.99 a barrel respectively.
- Jet fuel swaps for November increased $3.91 to $127.52, while the
November regrade, or the difference between jet and diesel prices, shot up by 83
cents to $3.01 a barrel.
* CRACKS: Gas oil's crack for November fell 8 cents to $16.38 a barrel over
Dubai crude.
- Jet fuel's November crack was up 75 cents to $19.39 a barrel.
* EAST-WEST SPREADS: The exchange of futures for swaps or EFS for November
was down $14.30 to minus $36.03 a tonne.
* CASH DIFFERENTIALS: The premiums for the 0.5 percent fell by five cents to
25 cents a barrel while the cash differentials for 0.25 percent and 500 ppm
sulphur gas oil remained steady at $1.05 and $1.70 respectively. Jet fuel
differential climbed 20 cents to 30 cents a barrel.
* PHYSICAL OUTRIGHTS: Benchmark diesel with a maximum sulphur content of 0.5
percent was up $2.77 to $124.87 a barrel, while jet fuel was up by $4.10 to
$127.90 a barrel.
* TENDERS: Egyptian General Petroleum Corporation (EGPC) is seeking 33,000
tonnes of gas oil for delivery over Oct. 23-25. The tender closes Oct. 17.
- Emarat is seeking 36,000 tonnes of jet fuel for delivery over Nov. 16-22.
The tender closes Oct. 20.
* CASH DEALS: One jet deal, no gas oil deals.
- Shell sold 150,000 barrels of jet fuel to BP at a premium of 30 cents a
barrel above the average prices of Nov. 2-9 Singapore quotes.
