SINGAPORE: Asian diesel premiums gained on Tuesday as supply of the fuel remained tight, traders said.
- TIGHT SUPPLY: Refiners have been maximising high sulphur gasoil and gasoline at the expense of diesel which has tightened the supply of the latter, in turn boosting differentials, a Singapore-based trader said.
Lower flat prices are also boosting differentials, another trader said.
- SRI LANKA STRIKE: Workers at Sri Lanka's state-run oil firm Ceylon Petroleum Corporation (CPC) called off a strike on Monday less than 24 hours in after the government agreed to consult them before signing an oil tank deal with India.
Thousands of Sri Lankan motorists queued for fuel earlier in the day after workers went on strike to demand the government scrap the deal which trade unions say would give India too much influence over fuel prices.
Sri Lanka has agreed with India to jointly develop and operate all the tanks in the oil storage facility in the port town of Trincomalee, near the world's second deepest natural harbour.
Lanka IOC already operates 15 of the oil tanks and the rest have not been used for decades.
For its part, IOC has agreed to build a second refinery with a capacity of at least 100,000 barrels per day (bpd) in Sri Lanka, while Modi pledged in 2015 to establish a petroleum hub in Trincomalee.
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