SINGAPORE: The cash discount on Asia's 500ppm gasoil grade was at its narrowest for this month on Monday at 10 cents a barrel, thanks to tighter global supplies and firmer demand especially in India.
India's diesel sales in November jumped more than 10 percent on a year-on-year basis, official data showed last week.
The country's stronger demand could be attributed to its demonetization move, consultancy firm FGE said in a note this month.
"The surprise move to scrap 500 and 1,000 rupee notes on Nov. 8 led to a temporary surge in gasoline and gasoil sales, as the government allowed the use of these scrapped notes for payments at fuel stations until December 2," FGE said.
TENDERS: India's Essar has offered up to 70,00 tonnes of 500ppm gasoil for Jan. 27-31 loading from Vadinar through a tender closing on Dec. 20.
Kuwait has offered up to 60,000 tonnes of jet fuel for Jan. 21-22 loading through a tender, also closing on Dec. 20.
On the other hand, Indonesia's Pertamina was looking to buy two cargoes of gasoil with 0.3 percent sulphur for late December delivery to Kotabaru and Tuban through a tender closing on Dec. 20.
OTHER NEWS: Royal Dutch Shell has signed an agreement with Viva Energy Australia for the sale of Shell Aviation Australia for $250 million, Shell said on Monday.
The transaction is expected to complete by mid-2017, subject to regulatory approval.
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