RTRS:Asia Distillates-Regrade at nearly 3-mth high on weak gasoil
SINGAPORE, Feb 27 (Reuters) - Asia's front-month
regrade rose for a ninth straight session to a nearly
three-month high on weak regional sentiments for gasoil.
While domestic demand is said to be steady in countries like
Sri Lanka and Indonesia, persistently high crude prices are
deterring any spike in spot imports in Asia, traders said.
The strength in regrade is more due to a weaker gasoil
market rather than a pick-up in jet fuel demand, they added.
Jet fuel March/April swaps slipped back into contango for
the first time in almost a week, as arbitrage economics which
appeared to slightly work last week slammed back shut on Monday.
China Aviation Oil, Asia's top jet fuel buyer, has cut back
its purchases for March and April by as much as 25 percent,
likely due to higher crude prices.
Meanwhile, Middle East gasoil premiums continued to surge
to new heights with Bahrain Petroleum Company (Bapco) selling
30,000 tonnes of 500 ppm sulphur gasoil at a premium of about
$4.50 a barrel to Middle East quotes, highest since March, 2009.
The buyer of the cargo is not known but could have likely
paid higher than market rate to cover an urgent short, a Middle
East-based trader said.
The cargo could likely be headed to East Africa where demand
has been growing this year, a second trader said.
In India, Mangalore Refinery and Petrochemicals Ltd
has a March loading 0.5 percent sulphur gasoil cargo
at 25 percent higher premiums than a cargo sold earlier this
month, traders said.
The cargo for loading over Mar. 28-30 was sold to Vitol at a
premium of about $2 a barrel above Middle East quotes, a more
than 20-month high.
Vitol could likely be sending the cargo to Jordan, as it
earlier won a spot tender to deliver 350,000 tonnes of gasoil
for delivery over March and April, a trader said.
In Sri Lanka, Lanka IOC has bought a combination cargo of
18,000 tonnes of 0.25 percent gasoil and 18,000 tonnes of
90-octane gasoline from Vitol at a premium of $2.70 a barrel to
Singapore quotes, slightly weaker than a previous spot cargo.
For exchange of futures for swaps (EFS) curve, click
* TENDERS: India's MRPL has offered 36,000 tonnes of jet
fuel for loading over Apr. 7-9. The tender closes on Mar. 1 and
is valid until Mar. 2.
- China Aviation Oil is seeking four 240,000-300,000-barrel
cargoes for loading over Mar. 21-31, Apr. 1-10, Apr. 11-20 and
Apr. 21-30. The tender closes on Feb. 28 and is valid until Feb.
29.
- Yemen's Aden Refinery is seeking 20,000 to 30,000 tonnes
of jet fuel for delivery over Mar. 12-14. The tender closes on
Feb. 29.
* SWAPS OUTRIGHTS: Gasoil's March and April swaps decreased
by 19 cents and 18 cents to $136.11 and $136.42 a barrel,
respectively.
- Jet fuel swaps for March were down 13 cents to $137.10,
while March regrade, or the difference between jet and diesel
prices, gained six cents to a premium of 99 cents a barrel.
* CRACKS: Gasoil's crack for March fell 81 cents to $14.49 a
barrel over Dubai crude, while jet fuel's crack decreased by 75
cents to $15.48 a barrel.
* EAST-WEST SPREADS: The Exchange of Futures for
Swaps (EFS) for March gained $2.33 to minus $14.73 a tonne.
* CASH DIFFERENTIALS: Cash premiums for all the gasoil
grades remained unchanged while jet fuel differential gained
four cents to a premium of nine cents a barrel to Singapore
quotes.
* PHYSICAL OUTRIGHTS: Benchmark diesel with a maximum
sulphur content of 0.5 percent was down 16 cents to $136.26 a
barrel, while jet fuel fell nine cents to $137.19 a barrel.
* CASH DEALS: No jet deal, two gasoil deals.
- Hin Leong bought 150,000 barrels of 0.5 percent sulphur
gasoil for loading over Mar. 13-17 from BP at parity to
Singapore quotes.
- Hin Leong bought 150,000 barrels of 0.5 percent sulphur
gasoil for loading over Mar. 13-17 from PetroChina at a premium
of 20 cents a barrel to Singapore quotes.
