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Asia Distillates-Gasoil margins climb on Sri Lankan demand, China fire
April 9, 2013 / 11:13 AM / in 5 years

Asia Distillates-Gasoil margins climb on Sri Lankan demand, China fire

SINGAPORE, April 9 (Reuters) - Asian gasoil margins climbed
on Tuesday as spot demand emerged from Sri Lanka's Ceylon
Petroleum Corp after a few months of absence and following a
fire at a secondary unit in a Sinopec refinery, industry sources
said.
    The May gasoil crack edged higher by 29 cents to $17.12 a
barrel above Dubai crude, Reuters data showed.    
    China's gasoil exports could reduce over the next few weeks
following a fire at Sinopec Shanghai Petrochemical Corp's
residue hydrotreating unit.
    The fire has been put out, but it is not clear how long the
unit may stay shut. A prolonged shutdown could lead to a
reduction in the output of transportation fuels and eventually
to a cut in refinery crude runs. 
    A company spokesman said that so far other units at the
refinery are operating normally.
    China has been exporting 250,000 tonnes to 300,000 tonnes a
month of gasoil, flipping to a net exporter after being a net
importer, which has helped to keep pressure on Asian refiners'
profit margins for the fuel. 
    Gasoil margins were also supported on Tuesday after Sri
Lanka's Ceylon Petroleum entered the spot market seeking prompt
gasoil for April, after being absent for most of this year. 
    In Taiwan, Formosa Petrochemicals Corp has likely
sold a May 8-12 loading jet fuel cargo at a slight premium to
Singapore quotes, an industry source said, though this could not
immediately be confirmed.
    The premium is 50 to 60 cents lower than a March loading
cargo sold by the refiner earlier, reflecting weaker demand in
the jet fuel market, sources said.
    Taiwan's CPC Corp was also offering up to 550,000 barrels of
gasoil for May, which could offset any potential reduction in
Chinese exports, the sources said. 
     
    * TENDERS: 
    - Taiwan's CPC Corp has offered 240,000 to 500,000 barrels
of either 500 ppm sulphur gasoil or 0.25 percent sulphur gasoil
for May loading. It has also offered 50,000 barrels of one
percent sulphur gasoil. The tender closes on April 10 and is
valid until April 12. 
    - Ceylon Petroleum Corp is seeking 300,000 barrels of 0.25
percent sulphur gasoil for April 23-24 delivery into Colombo.
The tender closes on April 10 and is valid for 72 hours.
    - Bahrain Petroleum Co has offered 40,000 tonnes of jet fuel
for May 1-4 loading. The tender closes on April 10.
    - Tasweeq is seeking 30,000 tonnes of 500 ppm sulphur light
gasoil (LGO) for May 10-11 delivery into Qatar. The tender
closes on April 9 and is valid until April 11.    
    - Yemen's Aden Refinery has offered 30,000 to 40,000 tonnes
of jet fuel for April 24-26 loading. The tender closed on April
8 and is valid until April 10.     
    
    * SINGAPORE CASH DEALS: No jet deals, one gasoil trade.
    - BP bought 150,000 barrels of 500 ppm sulphur gasoil for
April 24-28 loading from Glencore at parity to the average of
April 24-May 3 Singapore quotes.     
    
 MID-DISTILLATES                                                                   
 CASH ($/T)          ASIA CLOSE       Change   % Change   Prev      RIC
                                                          Close     
 Spot Gas Oil 0.5%            116.49    -4.28      -3.54    120.77  GO-SIN
 GO 0.5 Diff                   -2.90     0.05      -1.69     -2.95  GO-SIN-DIF
 Spot Gas Oil 0.25%           117.79     0.31       0.26    117.48  GO25-SIN
 GO 0.25 Diff                  -1.60     0.05      -3.03     -1.65  GO25-SIN-DIF
 Spot Gas Oil 0.05%           119.43     0.37       0.31    119.06  GO005-SIN
 GO 0.05 Diff                   0.04     0.11         --     -0.07  GO005-SIN-DIF
 Spot Gas Oil                 121.09     0.32       0.26    120.77  GO10-SIN
 0.001%                                                             
 GO 0.001 Diff                  1.70     0.06       3.66      1.64  GO10-SIN-DIF
 Spot Jet/Kero                118.88     0.44       0.37    118.44  JET-SIN
 Jet/Kero Diff                 -0.30    -0.01       3.45     -0.29  JET-SIN-DIF
                                                                                   
 SWAPS  ($/T)        ASIA CLOSE       Change   % Change   Prev      PM (1130 GMT)
                     (0830 GMT)                           Close     
 Brent M1                     105.12     0.11       0.10    105.01              
 Gasoil M1                    119.31     0.22       0.18    119.09             
 Gasoil M1/M2                  -0.18    -0.07      63.64     -0.11              
 Gasoil M2                    119.49     0.29       0.24    119.20             
 Regrade M1                    -0.37     0.17     -31.48     -0.54               
 Regrade M2                    -0.05     0.10     -66.67     -0.15               
 Jet M1                       118.94     0.39       0.33    118.55              
 Jet M1/M2                     -0.50     0.00       0.00     -0.50               
 Jet M2                       119.44     0.39       0.33    119.05              
 Gasoil                        17.12     0.29       1.72     16.83             
 500ppm-Dubai                                                       
 Cracks M1                                                          
 Gasoil                        17.66     0.27       1.55     17.39             
 500ppm-Dubai                                                       
 Cracks M2                                                          
 Jet Cracks M1                 16.98     0.30       1.80     16.68              
 Jet Cracks M2                 17.72     0.28       1.61     17.44              
 East-West M1                   0.28    -3.19     -91.93      3.47              
 East-West M2                  -1.30    -1.84         --      0.54              
 LGO M1                       888.50     4.75       0.54    883.75           
 LGO M1/M2                     -3.00     0.75     -20.00     -3.75              
 LGO M2                       891.50     4.00       0.45    887.50           
 Crack LGO-Brent M1            14.54     0.42       2.97     14.12             
 Crack LGO-Brent M2            14.70     0.24       1.66     14.46             
 
 (Reporting by Jessica Jaganathan)

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