Indian state-owned refiner BPCL's purchase of low-sulphur diesel for August delivery is likely to be followed by more imports, with its continuing demand helping to mop up Asia-Pacific supplies amid limited arbitrage opportunities.
BPCL bought through a tender around 558,000 bl of low-sulphur and ultra-low sulphur diesel for August delivery, following its last purchase totalling around 372,000 bl of low-sulphur diesel for late July delivery.
India's continuing imports come on the back of the country's tighter domestic specifications and the country's refineries continuing their upgrades to meet these new regulations. The arbitrage to Europe, a main long-haul outlet for surplus diesel from Asia, remains unworkable.
But the arbitrage from Asia to Chile, a less common outlet given Chile's tighter specifications, is thought to be marginal at best. The Coipo was provisionally chartered by an oil firm to take 298,000 bl of diesel to the US west coast, with an option to discharge in Chile, loading on 30 July from South Korea. It follows the Baltic Wave that is on subjects to make a similar trip to the US west coast, and possibly with an option to discharge in Chile, loading 260,000 bl from South Korea on 1 August.
BPCL bought through a tender around 558,000 bl of low-sulphur and ultra-low sulphur diesel for August delivery, following its last purchase totalling around 372,000 bl of low-sulphur diesel for late July delivery.
India's continuing imports come on the back of the country's tighter domestic specifications and the country's refineries continuing their upgrades to meet these new regulations. The arbitrage to Europe, a main long-haul outlet for surplus diesel from Asia, remains unworkable.
But the arbitrage from Asia to Chile, a less common outlet given Chile's tighter specifications, is thought to be marginal at best. The Coipo was provisionally chartered by an oil firm to take 298,000 bl of diesel to the US west coast, with an option to discharge in Chile, loading on 30 July from South Korea. It follows the Baltic Wave that is on subjects to make a similar trip to the US west coast, and possibly with an option to discharge in Chile, loading 260,000 bl from South Korea on 1 August.
