SINGAPORE: Asia's benchmark 500ppm gasoil cash premium to Singapore quotes fell to 4 cents a barrel on Friday, its lowest since May 26, amid more aggressive selling from suppliers, traders said.
Three cash deals for 500ppm gasoil were reported in the Platts window, with two 150,000 barrel cargoes trading at parity to Singapore quotes and another 150,000 barrels changing hands at a premium of 10 cents a barrel, industry sources said.
By contrast, on Tuesday 450,000 barrels of 500ppm gasoil were traded at premiums ranging from 20 cents to 25 cents a barrel to Singapore quotes.
Gasoil premiums have recently come under pressure as a result of slowing Indian demand ahead of the monsoon season and as global refinery turnarounds reach a low point.
In India, strength in private consumption persisted in May with diesel demand gaining 8 percent year-on-year (or 130,000 barrels per day), said JBC Energy in a daily market report.
Indian diesel demand, however, "is set to wane going forward as the unusual support from the dry weather, hindering hydro power generation and spurring irrigation requirements, subsides, on top of the seasonally expected decline in demand," it said.
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- Oil refineries worldwide are looking to reduce gasoline yields in favor of distillates as high global stocks of the motor fuel weighed on its profit margins.
- Global oil majors Chevron Corp and Royal Dutch Shell Plc are putting small refineries on the auction block as they look to trim lower-margin assets in the face of headwinds from rising crude oil prices.
- A Venezuelan businessman pleaded guilty on Thursday to charges stemming from what the US Justice Department called a large, ongoing investigation into bribery at Venezuela's state oil company.
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