Sri Lankan refiner Ceylon Petroleum (Ceypetco) has bought 0.25pc sulphur diesel at a higher premium than its previous purchase, amid a firming Asia-Pacific market even with limited arbitrage prospects.
Ceypetco paid a premium of $1.23/bl to Mops on a cfr Colombo basis for the 300,000 bl cargo, scheduled for 16-17 August delivery. The price is firmer than its previous purchase of a 225,000 bl cargo of the same sulphur grade, done at a premium of $0.93/bl to the same quotes for 17-18 June delivery to Colombo.
Sentiment in Asia-Pacific markets has received a boost with Taiwan's Formosa Petrochemical shutting its 540,000 b/d refinery on 25 July following a fire that started at its 80,000 b/d residual desulphuriser. While two out of three of its 180,000 b/d crude distillation units may restart in a few days, operating rates are likely to be reduced because of the affected residual desulphuriser that curbs diesel exports. The Taiwanese refiner last sold 480,000 bl of 500ppm low-sulphur diesel for second-half August loading.
Gasoil's prompt-month crack spread, or its premium relative to Dubai crude values, has risen to $12.52/bl the highest level since the end of June.
Potential limitations on diesel exports could help counterbalance ample supplies in Asia-Pacific, amid an influx of exports from South Korea and Japan, along with an unworkable east-west arbitrage.
Ceypetco paid a premium of $1.23/bl to Mops on a cfr Colombo basis for the 300,000 bl cargo, scheduled for 16-17 August delivery. The price is firmer than its previous purchase of a 225,000 bl cargo of the same sulphur grade, done at a premium of $0.93/bl to the same quotes for 17-18 June delivery to Colombo.
Sentiment in Asia-Pacific markets has received a boost with Taiwan's Formosa Petrochemical shutting its 540,000 b/d refinery on 25 July following a fire that started at its 80,000 b/d residual desulphuriser. While two out of three of its 180,000 b/d crude distillation units may restart in a few days, operating rates are likely to be reduced because of the affected residual desulphuriser that curbs diesel exports. The Taiwanese refiner last sold 480,000 bl of 500ppm low-sulphur diesel for second-half August loading.
Gasoil's prompt-month crack spread, or its premium relative to Dubai crude values, has risen to $12.52/bl the highest level since the end of June.
Potential limitations on diesel exports could help counterbalance ample supplies in Asia-Pacific, amid an influx of exports from South Korea and Japan, along with an unworkable east-west arbitrage.
