Asia Distillates-Gasoil cash discounts widen as Unipec sells cargoes

Mon Apr 1, 2013 8:00am EDT

SINGAPORE, April 1 (Reuters) - Asian gasoil cash discounts
widened on Monday when Unipec, the trading arm of China's
Sinopec, sold additional cargoes in Singapore as China's gasoil
demand growth slows due to added capacity, industry sources
said. 
    Unipec sold 300,000 barrels of gasoil for mid-April loading
to Vitol, while Glencore sold 150,000 barrels to BP, the sources
said.
    China is expected to continue to be a net exporter of about
250,000 to 300,000 tonnes of diesel a month, which is weighing
on the market, they said. 
    Adding to the supply, Taiwan's Formosa Petrochemicals Corp
could issue a tender next week to offer jet fuel, 10 ppm sulphur
diesel and 500 ppm sulphur gasoil for loading in May, a source
close to the matter said. 
    The company's Mailiao refinery is undergoing partial planned
maintenance for 45 days from April, after which supply is
expected to resume, traders said.
    Taiwan's CPC Corp also offered a jet fuel cargo for May,
even as demand remained weak in Asia. 
    A recent tender by China Aviation Oil to buy up to 1.2
million barrels of jet fuel might not have attracted much
interest from sellers, traders said, although this could not be
confirmed. 
    India's Bharat Petroleum Corp has shut a crude distillation
unit for planned maintenance from the third week of March to
April 10, but the company is unlikely to seek diesel in the spot
market due to adequate domestic supply, a source close to the
matter said.
    In the Middle East, Bahrain Petroleum Co has sold an April
loading jet fuel cargo to Vitol at a premium of $2.60 to $2.70 a
barrel above Middle East quotes, about 30 to 50 cents higher
than a February loading cargo sold earlier, traders said.
    A separate tender for the company to sell gasoil for April
will likely be awarded later on Monday. Offers for the tender
were above $2 a barrel, an industry source said, though this
could not be confirmed.
    Egyptian General Petroleum Corp has likely bought eight
cargoes of gasoil for delivery into El Dekheila and Alexandria
from Litasco at premiums of $19 to $21 a tonne and two cargoes
for delivery into Suez from Vitol at premiums of above $6 a
tonne, an industry source said, although this could not be
confirmed. 

    * TENDERS: Taiwan's CPC Corp has offered 300,000 barrels of
jet fuel for May 1 to 31 loading. The tender closes on April 2,
with validity until April 3. 
    
    * SINGAPORE CASH DEALS: No jet deals, three gasoil trades.
    - Unipec sold two cargoes of 150,000 barrels each of 500 ppm
sulphur gasoil for April 16 to 20 loading to Vitol at discounts
of 40 cents a barrel to the average of April 15 to 19 Singapore
quotes. 
    - Glencore sold 150,000 barrels of 500 ppm sulphur gasoil
for April 16 to 20 loading to BP at a discount of 40 cents a
barrel to the average of April 15 to 19 Singapore quotes. 

 MID-DISTILLATES                                                                  
 CASH ($/T)          ASIA CLOSE       Change   % Change   Prev      RIC
                                                          Close     
 Spot Gas Oil 0.5%            118.83    -0.73      -0.61    119.56  GO-SIN
 GO 0.5 Diff                   -3.10    -0.05       1.64     -3.05  GO-SIN-DIF
 Spot Gas Oil 0.25%           120.13    -0.73      -0.60    120.86  GO25-SIN
 GO 0.25 Diff                  -1.80    -0.05       2.86     -1.75  GO25-SIN-DIF
 Spot Gas Oil 0.05%           121.62    -0.93      -0.76    122.55  GO005-SIN
 GO 0.05 Diff                  -0.31    -0.25     416.67     -0.06  <GO005-SIN-DIF
                                                                    >
 Spot Gas Oil                 123.43    -0.78      -0.63    124.21  GO10-SIN
 0.001%                                                             
 GO 0.001 Diff                  1.50    -0.10      -6.25      1.60  GO10-SIN-DIF
 Spot Jet/Kero                121.68    -0.49      -0.40    122.17  JET-SIN
 Jet/Kero Diff                 -0.20    -0.09      81.82     -0.11  JET-SIN-DIF
                                                                                  
 SWAPS  ($/T)        ASIA CLOSE       Change   % Change   Prev      PM (1130 GMT)
                     (0830 GMT)                           Close     
 Brent M1                     109.84    -0.12      -0.11    109.96              
 Gasoil M1                    121.80    -0.71      -0.58    122.51             
 Gasoil M1/M2                  -0.48    -0.09      23.08     -0.39              
 Gasoil M2                    122.28    -0.62      -0.50    122.90             
 Regrade M1                    -0.05     0.30     -85.71     -0.35               
 Regrade M2                    -0.05     0.15     -75.00     -0.20               
 Jet M1                       121.75    -0.41      -0.34    122.16              
 Jet M1/M2                     -0.48     0.06     -11.11     -0.54               
 Jet M2                       122.23    -0.47      -0.38    122.70              
 Gasoil                        15.97    -0.52      -3.15     16.49             
 500ppm-Dubai                                                       
 Cracks M1                                                          
 Gasoil                        16.89    -0.42      -2.43     17.31             
 500ppm-Dubai                                                       
 Cracks M2                                                          
 Jet Cracks M1                 15.92    -0.37      -2.27     16.29              
 Jet Cracks M2                 16.84    -0.42      -2.43     17.26              
 East-West M1                  -8.34    -4.29     105.93     -4.05              
 East-West M2                  -7.76    -3.37      76.77     -4.39              
 LGO M1                       915.75    -1.00      -0.11    916.75           
 LGO M1/M2                     -3.00     0.25      -7.69     -3.25              
 LGO M2                       918.75    -1.25      -0.14    920.00           
 Crack LGO-Brent M1            13.48    -0.05      -0.37     13.53             
 Crack LGO-Brent M2            14.05     0.03       0.21     14.02             
 
 (Reporting by Jessica Jaganathan)