July 2, 2012 / 11:16 AM / 5 years ago

Asia Distillates- Margins above $17 on Saudi demand

SINGAPORE, July 2 (Reuters) - Asian diesel margins held
above $17 a barrel on Monday, despite slipping slightly from
Friday, as Saudi Arabia stepped up imports for summer demand as
supply remained thin in Asia and the Middle East.
    The August gasoil crack fell 25 cents to $17.16 a barrel
above Dubai crude, but remained well above the June low of just
above $15 a barrel, Reuters data showed.
    Traders estimated Saudi Aramco bought about 400,000 to
500,000 tonnes for July, up from an estimated 350,000 tonnes in
June. It is expected to book a similar amount for August as
well. 
    Aramco has been buying heavily for June and July to make
sure it is covered through Ramadan, the Muslim holy month due to
start in mid-July, traders said. 
   Offers were placed at around $4.50 a barrel above Middle East
quotes, while trades are being done at around $4.20-4.30 a
barrel, two of the traders said.  
   This was up about 10-30 cents a barrel from June loading
cargoes in the Gulf, they added. 
    "Aramco will ensure they have sufficient supply and stocks
until mid-September," a Gulf-based trader said, adding an
unplanned outage in one of the units at Jubail refinery may have
added to the shortage. 
    Supply, however, remained tight in the absence of sell
tenders for diesel in Asia and the Gulf. Refineries in Asia have
been faced with run cuts and maintenance, both planned and
unplanned. 
    As a result, east-west spreads have widened making it more
profitable to send gasoil and jet fuel cargoes from Asia to
Europe. 
    The exchange of futures for swaps, or EFS, fell $2.10 to
minus $24.31 a tonne on Monday, Reuters data showed. 
    Bahrain Petroleum Co (Bapco) started August trading in the
Middle East, by offering a cargo for late in that month. The
premiums were expected to be around $2 a barrel above Middle
East quotes, down from the mid $2-range traded for
earlier-loading cargoes, traders said.
    "The Mediterranean region is long on jet fuel so the
premiums will likely be around $2 a barrel if not lower," said a
Gulf-based trader. 
    
 
 
    
    * TENDERS: Bapco has offered 40,000 tonnes of jet fuel for
loading over August 22-25. The tender closed on July 2. 
    
    * CASH DEALS: One jet deal, no gasoil trades.
    -  BP sold 100,000 barrels of jet fuel for loading over July
17-21 to Shell at a premium of 10 cents a barrel to Singapore
quotes.    
 MID-DISTILLATES                                                                  
 CASH ($/T)          ASIA CLOSE       Change   % Change   Prev     RIC
                                                          Close    
 Spot Gas Oil 0.5%            111.17     2.95       2.73   108.22  GO-SIN
 GO 0.5 Diff                   -0.02    -0.02        N/A     0.00  GO-SIN-DIF
 Spot Gas Oil 0.25%           112.53     2.96       2.70   109.57  GO25-SIN
 GO 0.25 Diff                   1.35     0.00       0.00     1.35  GO25-SIN-DIF
 Spot Gas Oil 0.05%           113.63     3.06       2.77   110.57  GO005-SIN
 GO 0.05 Diff                   2.45     0.10       4.26     2.35  GO005-SIN-DIF
 Spot Gas Oil                 114.99     2.97       2.65   112.02  GO10-SIN
 0.001%                                                            
 GO 0.001 Diff                  3.80     0.00       0.00     3.80  GO10-SIN-DIF
 Spot Jet/Kero                112.11     3.26       2.99   108.85  JET-SIN
 Jet/Kero Diff                  0.10     0.10        N/A     0.00  JET-SIN-DIF
                                                                                  
 SWAPS  ($/T)        ASIA CLOSE       Change   % Change   Prev     PM (1130 GMT)
                     (0830 GMT)                           Close    
 Brent M1                      96.32     3.32       3.57    93.00              
 Gasoil M1                    111.20     2.94       2.72   108.26             
 Gasoil M1/M2                   0.07    -0.13        N/A     0.20              
 Gasoil M2                    111.13     3.07       2.84   108.06             
 Regrade M1                     0.81     0.23      39.66     0.58               
 Regrade M2                     0.88     0.05       6.02     0.83               
 Jet M1                       112.01     3.17       2.91   108.84              
 Jet M1/M2                      0.00     0.05    -100.00    -0.05               
 Jet M2                       112.01     3.12       2.87   108.89              
 Gasoil 0.5%-Dubai             17.16    -0.25      -1.44    17.41             
 Cracks M1                                                         
 Gasoil 0.5%-Dubai             17.23    -0.28      -1.60    17.51             
 Cracks M2                                                         
 Jet Cracks M1                 18.04    -0.20      -1.10    18.24              
 Jet Cracks M2                 18.27    -0.26      -1.40    18.53              
 East-West M1                 -24.31    -2.10       9.46   -22.21              
 East-West M2                 -19.46    -1.38       7.63   -18.08              
 LGO M1                       852.75    24.00       2.90   828.75           
 LGO M1/M2                      5.38    -0.25      -4.44     5.63              
 LGO M2                       847.38    24.25       2.95   823.13           
 Crack LGO-Brent M1            17.42    -0.07      -0.40    17.49             
 Crack LGO-Brent M2            16.93    -0.09      -0.53    17.02             
 
 (Reporting by Jessica Jaganathan, editing by William Hardy)

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