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Top S.Korean refiners April area diesel sale volumes may strike 6-month high

Leading South Korean refiners' spot 10 ppm sulphur diesel sale volumes for April are slated to hit a sixmonth high following the issuance of more tenders after sales recently, according to tender documents seen and trade sources on Thursday.

GS Caltex, SK Energy, a subsidiary of SK Innovation , and Hyundai Oilbank offered a minimum of six more 10ppm sulphur gasoil freights for second-half April loading given that middle of this week, the sources stated.

This comes after the sale of 11 area freights since the start of last week at discounts of more than $1 a barrel.

If effective, the overall number of area cargoes sold by South Korean refiners will likely strike 17, a level last seen in September in 2015 for October-loading area cargoes.

This ready area supply from South Korea could cancel the possible decrease in April China-origin exports to listed below 1 million metric loads and position a ceiling on refining margins in the near term, two of the sources stated.

Refining margins for March have averaged at $21 a barrel, down from last month's $24.60 a barrel, LSEG information revealed on Thursday.

The increase in area uses follows a slight healing in refinery pursues a portion of refinery and derivative systems' planned upkeep ends, among the sources stated.

GS Caltex is using 2 more 300,000-barrel 10ppm sulphur gasoil cargoes filling April 23-27 and April 25-29 by means of a sales tender that closes on March 22 with same-day credibility.

Meanwhile, SK Energy is providing 3 more freights filling April 16-18, 18-20 and 23-25 via a spot tender that closes later in the day. The refiner also offered one April 22-24 loading freight on March 20, one of the sources added.

Hyundai Oilbank likewise participated, offering a 450,000-barrel 10ppm sulphur gasoil freight loading April 26-30 via a spot tender that closes later on in the day.

There could be a chance for these freights to be delivered together in a larger-sized vessel to the West for expense savings, though the locations stay unclear, among the sources stated.

(source: Reuters)