India’s diesel imports have intensified with a state-owned refiner entering the spot market on Tuesday to seek its seventh cargo of the fuel for July, trade sources said. But imports could slow as monsoon season starts in India, they added.
INDIA SEEKS MORE
The Hindustan Petroleum Corp (HPCL) is seeking 60,000 tonnes of 40ppm sulphur gasoil for delivery into Vizag over July 20-25 in a tender that closes on July 5.
This is the state-owned company’s seventh cargo requirement for July, though it was not clear if all previous tenders have been awarded.
The HPCL-Mittal Energy Ltd (HMEL) was expected to start up its 230,000 barrels per day Bathinda refinery in Punjab after it shut for planned maintenance in late April, but the refinery is still not back in operation, an industry source said, though this could not immediately be confirmed.
MONSOON COULD CURB
India’s diesel demand has been strong despite the start of monsoon season due to several power outages which has boosted diesel demand in back-up power generators, an industry source said.
It is still early days in India’s monsoon season. Once rains intensify, demand for the fuel in the agriculture sector could slow, the source added.
NEW LOAD POINT
Oil pricing agency S&P Global Platts said on Tuesday it will include Singapore’s Jurong Aromatics Corp as a loading point in its pricing process known as Market on Close for gasoil and jet fuel from Aug. 1.
Sellers in the MOC process will be able to nominate JAC as a loading point for cargoes traded on a FOB Straits basis, it said, following a review last month.
Myanmar’s refined fuel consumption growth is set to outperform the rest of Asia from 2017 to 2026 due to factors including strong economic growth, a rapid rise in car ownership and a surge in aviation traffic, BMI Research said in a note.
Already the sixth-largest net fuel importer in Asia, Myanmar’s imports are expected to grow to over 345,000 barrels per day (bpd) by 2026 from an estimated 212,000 bpd in 2017, it added.
SINGAPORE CASH DEALS
One gasoil and two jet fuel deals reported.
Source: ReutersPrevious Next