Kuwait sells deferred Pakistan diesel, premiums fall
Premiums for 0.2 percent and 0.5 percent sulphur gas oil have fallen below $1.50 a barrel to Middle East spot quotes this week.
August 20, 2010 2:37 by Reuters
Gas oil premiums in the Middle East have slumped over the past week, spurred partly by the sale of at least two spot parcels by Kuwait Petroleum Corp (KPC) after term buyer Pakistan deferred delivery of the cargoes due to the country’s devastating floods, traders said on Friday.
Premiums for 0.2 percent and 0.5 percent sulphur gas oil have fallen below $1.50 a barrel to Middle East spot quotes this week, compared with around $2.00-$2.50 a barrel last week, traders said.
Traders attributed the price slide to the sale of at least two 0.2 percent sulphur gas oil cargoes by KPC in the spot market after Pakistan State Oil (PSO) deferred deliveries of its August term parcels.
KPC sold a spot gas oil cargo for Aug. 23-24 loading to Glencore at a premium of $1.10 a barrel to Middle East spot quotes earlier this week, after selling a similar parcel to Trafigura at a premium of $2.05 a barrel last week, traders said.
“We heard KPC sold some cargoes because of the shipments that were force majeured by Pakistan, so high-sulphur gas oil premiums in the Mid-East Gulf have collapsed,” said one trader.
(Reporting by Jennifer Tan; Editing by Ramthan Hussain)