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Monday, January 25, 1999

Asian oil product swaps steady 

REUTERS  
Singapore: Singapore oil product swaps were steady in quiet afternoon trade on Friday as the market held its early gains on the back of a strong crude, traders said.

"It's a bit quiet right now. People are taking stock after this morning's rise. It's not clear if the physical market can support these increases," one trader said. February gas oil swaps was last quoted $14.50/$14.60 per barrel, up from Thursday's $14.25/$14.35, brokers said. They said the market traded in the morning at $14.65 and $14.60, both Times bought by a local trader. Traders said the market caution was due a lack of strong regional end user demand where India's requirement to March has been factored, with China not expected in the spot to well after mid-February. Chinese diesel imports for 1998 fell by 57 per cent from a year ago to 3.1 million tonnes with December imports at a paltry 40,435 tonnes, according to custom figures. The strong prompt physical support, however, has widened the time spread between front months withFebruary/March spread last quoted at 20/35 cents compared with 15/25 cents on Thursday. In the gas oil physical market on Thursday a local trader had bid up the early February loading date cargoes to $14.80 and bought a mid-February cargo at $14.50.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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