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Asia Distillates-Medium sulphur gasoil premiums up on Vietnam demand
March 20, 2012 / 11:09 AM / 6 years ago

Asia Distillates-Medium sulphur gasoil premiums up on Vietnam demand

SINGAPORE, March 20 (Reuters) - Medium sulphur gasoil
premiums climbed over 10 percent on Tuesday as demand emerged
from Vietnam and supply remained tight in Asia and the Middle
East.	
    The cash premium for the 500 ppm sulphur gasoil shot up 20
cents to $1.85 a barrel above benchmark Singapore prices,
highest since Feb. 10, Reuters data showed.     	
    Taiwan's Formosa has sold a 500 ppm sulphur gasoil cargo for
loading over Apr. 26-30 to Shell at a premium of around $1.35 to
$1.40 a barrel, the highest premium sold for this year, industry
sources said.	
    Shell could likely be buying the cargo to cover shorts, one
of them said.	
    In Vietnam, the country's top oil importer and distributor,
Petrolimex, and state-owned oil marketer, PV Oil, are seeking a
total of 78,000 tonnes of gasoil for delivery over March and
April in two separate tenders, industry sources said.
 	
    This is in addition to the 96,000 tonnes of gasoil already
purchased by Petrolimex, PV Oil and Saigon Petro, for March and
April, which makes imports for the two months about three to
four times more than in February.	
    "When prices are up, importers just wait and use their
inventory to serve the market; when prices go down they will
import again, but you can't wait so long," said a source based
in Vietnam, referring to the renewed buying from importers for
March and April in order to meet pent-up domestic demand. 	
    In the Middle East, consumption is expected to go up as
summer demand is starting to kick in the country, industry
sources said. This could curtail spot availability from the
Middle East refiners even when they are back from turnaround
season in April/May.	
    "People are already starting to use their air-conditioners
now, so demand will probably start to go up soon," said a
Gulf-based trader. Gasoil is used for power generation needs
when summer kicks in.      	
    	
     	
    * TENDERS: Vietnam's Petrolimex is seeking 11,000 tonnes of
500 ppm sulphur gasoil for delivery over Mar. 26-28, 15,000
tonnes for delivery over Mar. 30-Apr. 3 and 35,000 tonnes for
delivery over Apr. 9-13. The tender closed on Mar. 20. 	
    - Vietnam's PV Oil is seeking 20,000 cubic metres of 0.25
percent sulphur gasoil for delivery over Apr. 20-25. The tender
closes on Mar. 22 and is valid until Mar. 27.	
     	
    * CASH DEALS: No deals reported.    	
	
    	
 MID-DISTILLATES                                                                            
 CASH ($/T)                ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                  137.20    -0.21      -0.15      137.41  GO-SIN
 GO 0.5 Diff                         -0.27    -0.12      80.00       -0.15  GO-SIN-DIF
 Spot Gas Oil 0.25%                 138.46    -0.10      -0.07      138.56  GO25-SIN
 GO 0.25 Diff                         1.00     0.00       0.00        1.00  GO25-SIN-DIF
 Spot Gas Oil 0.05%                 139.31     0.10       0.07      139.21  GO005-SIN
 GO 0.05 Diff                         1.90     0.25      15.15        1.65  GO005-SIN-DIF
 Spot Gas Oil 0.001%                140.46    -0.05      -0.04      140.51  GO10-SIN
 GO 0.001 Diff                        3.00     0.05       1.69        2.95  GO10-SIN-DIF
 Spot Jet/Kero                      137.16    -0.22      -0.16      137.38  JET-SIN
 Jet/Kero Diff                       -0.40    -0.03       8.11       -0.37  JET-SIN-DIF
                                                                                            
 SWAPS  ($/T)              ASIA CLOSE       Change   % Change   Prev Close  PM (1130 GMT)
                           (0830 GMT)                                       
 Brent M1                           124.49    -0.70      -0.56      125.19              
 Gasoil M1                          137.49    -0.10      -0.07      137.59             
 Gasoil M1/M2                        -0.20    -0.01       5.26       -0.19              
 Gasoil M2                          137.69    -0.09      -0.07      137.78             
 Regrade M1                           0.10    -0.10     -50.00        0.20               
 Regrade M2                           0.16    -0.07     -30.43        0.23               
 Jet M1                             137.59    -0.20      -0.15      137.79              
 Jet M1/M2                           -0.26    -0.04      18.18       -0.22               
 Jet M2                             137.85    -0.16      -0.12      138.01              
 Gasoil 0.5%-Dubai Cracks            15.48     0.36       2.38       15.12             
 M1                                                                         
 Gasoil 0.5%-Dubai Cracks            16.80     0.32       1.94       16.48             
 M2                                                                         
 Jet Cracks M1                       15.58     0.26       1.70       15.32              
 Jet Cracks M2                       16.96     0.25       1.50       16.71              
 East-West M1                       -11.70     0.75      -6.02      -12.45              
 East-West M2                        -8.83     1.71     -16.22      -10.54              
 LGO M1                            1036.00    -1.50      -0.14     1037.50           
 LGO M1/M2                            1.38     0.88     176.00        0.50              
 LGO M2                            1034.63    -2.37      -0.23     1037.00           
 Crack LGO-Brent M1                  14.39     0.39       2.79       14.00             
 Crack LGO-Brent M2                  14.67     0.19       1.31       14.48             
 	
 (Reporting by Jessica Jaganathan; editing by Keiron Henderson)

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