Asia's cash premium for benchmark 500ppm gasoil stayed firm on Friday as a buying spree in the Singapore cash market continued with a total of 10 deals for 500ppm gasoil, with Vitol and Glencore buying most of the cargoes.
Buying interest in the Singapore cash market would likely continue for a while, traders said, although it was not immediately clear where the cargoes will head to. Traders added that they are pinning their hopes on regional demand picking up and refinery cuts to curb supply. India's Mangalore Refinery and Petrochemicals Ltd has cut runs at its 300,000-barrels-per-day refinery after the detection of a leak in one of the plant's two hydrocrackers, a company source said.
"There was a marginal leak detected in Hydrocracker-II at about 3:30 p.m. and it was contained in an hour. We are in the process of restarting the unit and we hope it will reach full capacity by tomorrow evening," the source said. The source did not specify the capacity of the hydrocracker.
SINGAPORE CASH DEALS: Ten gasoil trades, no jet fuel deals
- Glencore bought three 250,000-barrel cargoes of 500ppm gasoil from BP at $122.40 a barrel for June 7 to 11 loading.
- Unipec bought 250,000 barrels of 500ppm gasoil from SK Energy at a 75 cents a barrel premium to Singapore quotes for loading from June 12 to 16.
- Vitol bought two 150,000-barrel cargoes of 500ppm gasoil from BP at $122.30 a barrel for June 18 to 22 loading.
- Vitol bought two 150,000-barrel cargoes of 500ppm gasoil from Winson at $122.30 a barrel for June 18 to 22 loading.
- Vitol bought 150,000 barrels of 500ppm gasoil from P66 at $122.30 a barrel for June 18 to 22 loading.
- Glencore bought 250,000 barrels of 500ppm gasoil from Winson at $122.40 a barrel for June 7 to 11 loading.
Reporting By Alice Woodhouse and Jane Chung