SINGAPORE: Asia's gasoil crack for benchmark 500ppm grade hit a four-session high of $11.90 a barrel on Tuesday, supported by brisk deals in the Singapore cash market.
A total of 1.05 million barrels of gasoil were transacted in Singapore's cash market, the highest volume traded in a single session since Feb. 11, Reuters data showed.
Lower levels of middle distillates exports from key suppliers had also recently given the market a lift as that helped offset record high volumes from China, traders said.
India, for example, exported 1.44 million tonnes of diesel in May, down 32 percent compared to its April shipment.
Taiwan's diesel exports in April dropped nearly 23 percent to 4.5 million barrels (about 602,000 tonnes) compared to March.
Traders attributed to fall in exports to refinery maintenance and domestic demand and these helped offset the impact of China's record diesel exports in May at nearly 1.5 million tonnes, up about 19 percent from April.
They expect the gasoil crack to hold firm in the short term due to steady demand from Southeast and South Asia.
JET FUEL CRACK EDGES UP
The Singapore's jet fuel crack was also at a four-session high of $12.38 a barrel.
Cargoes moving from Asia to the US West Coast were still being seen.
On a longer-term outlook in the West, however, the International Air Transport Association (IATA) said late last week that the number of British air passengers could drop by 3-5 percent by 2020 with an expected downturn in the economy and fall in sterling following the Brexit vote.
TENDERS: Bahrain's Bapco offered up to 60,000 tonnes of 10ppm gasoil for July 28-31 loading in a tender closing on June 30.
The Middle East refiner had recently sold similar volumes of the 10ppm grade for July 22-25 loading at a premium of about $2 to Middle East quotes on a free-on-board (FOB) basis.
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