SINGAPORE, May 22 (Reuters) - The Asian ultra low sulphur diesel premium fell to a more than six-week low on Wednesday as arbitrage economics to send the cargoes to Europe remained firmly shut on weak European demand, industry sources said. The cash premium for the 10 ppm sulphur diesel premium fell 12 cents to $1.66 a barrel above Singapore quotes, lowest since April 8 when it was at $1.64, Reuters data showed. Australia remains one of the main importers of the diesel grade, apart from Europe, traders said. But lower refinery runs in Japan, a major exporter of the grade, could support the premiums in the next week, they added. Japan's refinery runs fell to 64.9 percent in the week to May 18, from 74.4 percent the previous week, latest data from the Petroleum Association of Japan showed.O/JAPAN1 But its diesel exports rose slightly despite the run cuts, suggesting domestic demand is lacklustre, traders said. India's Hindustan Petroleum Corp Ltd (HPCL) is seeking a rare high sulphur gasoil cargo for early June delivery after a fire at its Visakhapatnam plant last week. The state-owned refiner sold a similar cargo last year and has turned buyer for the first time in at least a year. A fire hit HPCL's 8.3 million tonnes a year Visakhapatnam plant on May 16, prompting it to shut a 3 million tonnes a year (or around 60,000 barrels-per-day) crude distillation unit. HPCL is aiming to restart the unit by the last week of June, a company source said. This could prompt more import tenders in the next few weeks as it is peak summer demand season in India when the fuel is used for power generation. Pakistan State Oil is expected to soon start term negotiations to purchase gasoil from its long-term supplier Kuwait Petroleum Corp, an industry source said. The company is not expected to buy any spot cargoes in the spot market despite power shortages which have hit the country, the source added. In the Gulf, a term contract by Abu Dhabi National Oil Co (ADNOC) to sell jet fuel from July this year to June next year is likely to have attracted bids of $2 a barrel and below, traders said, though this could not immediately be confirmed. ADNOC requested a premium of $2.25 a barrel above Middle East quotes, but given the weak global demand for jet fuel, this might be too high, one of them said. But some demand emerged from from Mediterranean for Gulf jet fuel cargoes, a second trader said, which could bolster premiums. * TENDERS: HPCL is seeking 25,000 to 30,000 tonnes of 1 percent sulphur gasoil for June 3 to 7 delivery into Vizag. The tender closes on May 23. - Kuwait Petroleum Corp has offered 40,000 tonnes of 0.2 percent sulphur gasoil for June 23 to 24 loading. The tender closes on May 23, with same-day validity. * SINGAPORE CASH DEALS: One gasoil deal, no jet fuel trades. - BP sold 150,000 barrels of 0.25 percent sulphur gasoil for June 6 to 10 loading to Unipec at a discount of 5 cents a barrel to the average of June 5 to 11 Singapore quotes. MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev RIC Close Spot Gas Oil 0.5% 115.42 -1.22 -1.05 116.64GO-SIN GO 0.5 Diff -1.60 0.20 -11.11 -1.80GO-SIN-DIF Spot Gas Oil 0.25% 116.82 -1.14 -0.97 117.96GO25-SIN GO 0.25 Diff -0.20 0.28 -58.33 -0.48GO25-SIN-DIF Spot Gas Oil 0.05% 117.77 -1.42 -1.19 119.19GO005-SIN GO 0.05 Diff 0.75 0.00 0.00 0.75GO005-SIN-DIF Spot Gas Oil 0.001% 118.68 -1.55 -1.29 120.23GO10-SIN GO 0.001 Diff 1.66 -0.12 -6.74 1.78GO10-SIN-DIF Spot Jet/Kero 116.03 -1.39 -1.18 117.42JET-SIN Jet/Kero Diff -0.15 0.00 0.00 -0.15JET-SIN-DIF SWAPS ($/T) ASIA CLOSE Change % Change Prev PM (1130 GMT) (0830 GMT) Close Brent M1 103.19 -1.20 -1.15 104.39BRENTSGMc1 Gasoil M1 117.00 -1.40 -1.18 118.40GOSGSWMc1 Gasoil M1/M2 0.42 -0.08 -16.00 0.50GOSGSPDMc1 Gasoil M2 116.58 -1.32 -1.12 117.90GOSGSWMc2 Regrade M1 -0.82 0.00 0.00 -0.82JETREGSGMc1 Regrade M2 -0.28 -0.09 47.37 -0.19JETREGSGMc2 Jet M1 116.18 -1.40 -1.19 117.58JETSGSWMc1 Jet M1/M2 -0.12 0.01 -7.69 -0.13JETSGSPDMc1 Jet M2 116.30 -1.41 -1.20 117.71JETSGSWMc2 Gasoil 500ppm-Dubai 16.88 -0.16 -0.94 17.04GOSGCKMc1 Cracks M1 Gasoil 500ppm-Dubai 16.76 -0.23 -1.35 16.99GOSGCKMc2 Cracks M2 Jet Cracks M1 16.06 -0.17 -1.05 16.23JETSGCKMc1 Jet Cracks M2 16.54 -0.26 -1.55 16.80JETSGCKMc2 East-West M1 4.97 1.64 49.25 3.33LGOAEFSMc1 East-West M2 -0.53 0.86 -61.87 -1.39LGOAEFSMc2 LGO M1 866.75 -12.00 -1.37 878.75LGOAMc1 LGO M1/M2 -2.00 -1.00 100.00 -1.00LGOASPDMc1 LGO M2 868.75 -11.00 -1.25 879.75LGOAMc2 Crack LGO-Brent M1 13.42 -0.28 -2.04 13.70LGOACKMc1 Crack LGO-Brent M2 13.79 -0.15 -1.08 13.94LGOACKMc2 (Reporting by Jessica Jaganathan, editing by William Hardy) ((jessica.jaganathan@thomsonreuters.com)(+65 6870 3822)(Reuters Messaging: jessica.jaganathan.thomsonreuters.com@reuters.net)) Keywords: MARKETS DISTILLATES/ASIA
Asia Distillates-Ultra low sulphur diesel premium falls
May 22, 2013




















