SINGAPORE: The Asian gasoil margin slipped on Monday as excess supply continued to weigh on the market with extra cargoes offered from Taiwan, industry sources said.
The October gasoil crack fell by 49 cents to $14.17 a barrel above Dubai crude, Reuters data showed.
Taiwan's Formosa Petrochemical Corp sold three medium-range sized gasoil cargoes for second half October loading to Winson Oil at a discount of 80 cents a barrel to Singapore quotes, which could be one of the lowest levels it has achieved for the cargoes in recent times, industry sources said.
The company still has an additional two cargoes for sale for October, one of the sources said.
Buyers are staying away from the spot market as they are hoping for a further fall in underlying crude oil prices, traders said.
"Buyers are expecting lower prices in the future, so they are all pulling back their interest," one of them said. He added that low consumption of diesel is also worsening the situation, causing prices to fall.
India's Mangalore Refinery and Petrochemicals Ltd (MRPL) sold 60,000 tonnes of 500 ppm sulphur gasoil for loading over Oct. 24 to 26 to Litasco at a premium of $1.20 a barrel above Middle East quotes, lower than the $1.50 to $1.55 a barrel it achieved for a mid-October loading cargo sold earlier, traders said.
The refiner also sold 40,000 tonnes of jet fuel for loading over Nov. 4 to 6 to BP at a discount of $1 a barrel to Singapore quotes, they added.
Still, spot demand from Jordan, Kenya and Tanzania helped to curb margin losses.
Spot demand for jet fuel also appeared out of Bangladesh, though volumes were too small to push cash differentials up, traders said.
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