SINGAPORE (Reuters) – South Korea’s key oil refiners are likely to see spot export sales volumes for 10ppm sulphur diesel climb to a four-month high in August, after offers for two more prompt-loading cargoes emerged in the market from SK Energy, several industry sources said on Thursday.
The oil major is offering at least two more 300,000-barrel cargoes loading on Aug. 14-16 and Aug. 26-28 via a tender that closes on Aug. 1 with same-day validity, after selling around 10 cargoes earlier.
So far, both GS Caltex and SK Energy have sold a combined total of 15 spot cargoes since mid-July, Reuters’ tender records showed. [MDIS/TENDA]
Most of which were at discounts averaging at $1.40-1.50 a barrel.
Higher spot supplies from South Korea for August shipment, one of Asia’s major fuel products exporters, will likely curb the market’s upside in the near term and add on to an already well-supplied market, three of the sources added.
India’s July-loading volumes to Singapore and Australia were already bound for a two and a half-year high, with some analysts also cautious on August demand in Asia given that a handful of refineries will be back from planned and unplanned maintenance.
If the sale tender by SK Energy closes successfully, South Korea’s oil majors will sell around 17 cargoes of 300,000-barrels each for this grade of diesel.
These higher export sale volumes come amid rising stockpiles and tepid domestic demand, one northeast Asian refinery source said.
Also, most of the country’s refineries should be “running quite well now” given the healthy refining margins, one Singapore-based source said, adding that there are no major refinery maintenance plans expected until mid-September at least.
The average profit margin from producing fuels from a barrel of Dubai crude at a typical Singapore complex refinery gained by $1 a barrel month on month in July at $4.80 a barrel, LSEG pricing data showed.
(Reporting by Trixie Yap; Editing by Janane Venkatraman)
