* Market tight, Kuwait refinery issue restricts supply
* Bapco cargo sold above $5/bbl, highest in years
By Humeyra Pamuk and Jessica Jaganathan
DUBAI/SINGAPORE, Sept 6 (Reuters) – Gasoil premiums in the
Gulf Middle East hit new highs this week, driven by a tight
market where the spot is being supported by still strong summer
demand, traders said.
Saudi Aramco has been the main buyer in the Gulf region
during the summer, snapping up more than 1.6 million tonnes of
gasoil between June and September while demand from South Africa
and Sudan has also supported prices, traders said.
An outage at Kuwait’s Mina Abdullah refinery, where a gasoil
producing hydrocracker is thought to have been down for at least
two weeks, has been further squeezing supplies.
“The market is just so tight right now, so any cargoes being
offered are instantly snapped up,” a Gulf-based trader said.
“Gasoil premiums have been going up steadily and I think they
will likely stay high until end of the year at least.”
The tight market was reflected in the most recent tender by
Bahrain Petroleum Co (Bapco), which has sold a gasoil cargo for
Oct 28-31 lifting at a premium of $5 to $5.35 a barrel above
Middle East quotes, consistent with November and August-loading
cargoes sold earlier, traders said.
Recent sales to Aramco had a premium of around $4.70 a
barrel, compared with $4.20 to $4.50 a barrel in July and
August, two traders said.
Continued…
