Sri Lanka, Philippines spot demand supports Asian gasoil market

Tuesday, 4 September 2012 00:58 - - {{hitsCtrl.values.hits}}

SINGAPORE (Reuters): Asian gasoil prices remained supported on Monday as spot demand emerged from Sri Lanka and the Philippines, traders said.

Gasoil cracks slipped by 14 cents to $19.91 a barrel while September prices increased more than October gasoil prices in the derivatives market.

Sri Lanka’s Ceylon Petroleum Corp. is seeking 300,000 barrels of gasoil for delivery in mid-September, after the country’s sole oil refinery shut on Saturday following damage to a floating pipeline at the Colombo port.

The import requirements are likely to make up a possible supply shortfall during the shutdown, which is expected to last a few days.

But the shutdown is unlikely to have a big impact on the gasoil market as Sri Lanka’s overall demand for gasoil is down due to the monsoon season, traders said.

The company has also bought a gasoil and gasoline combination cargo from a little-known Indonesian company called Bumi Siak for the first time.

It paid a premium of $5.10 a barrel above Singapore quotes, for the gasoil portion of the cargo which made up 30,000 barrels.

Traders were surprised at Bumi Siak’s sale as Indonesia is a net importer of gasoil and gasoline.

Diesel demand also emerged from the Philippines, with Petron seeking a cargo for early October delivery. Demand for transport fuel in the Philippines has been higher on the back of a growing economy.

In the jet fuel market, more supply was seen out of Yemen, with the country’s Aden Refinery offering its second cargo since it resumed production last month, after a nine-month halt.