Taiwan’s FPCC sells spot Nov diesel at premium, sources say

Taiwan’s Formosa Petrochemical Corp (FPCC) has sold November-loading diesel at slight premiums, three trade sources with knowledge of the matter said on Wednesday, for the first time in more than a year.

The oil major sold around 750,000 barrels of 10ppm sulphur gasoil at a premium of around 10 cents a barrel to Singapore price quotes via a sales tender which closed today, they added.

The cargo is supposed to load Nov. 25-29, with the buyer being a major western trading house, two of the three sources said.

This is the first cargo sold at a premium for the first time since September last year by the refiner, Reuters records showed.

FPCC has sold two 750,000-barrel 10ppm sulphur gasoil cargoes for November loading so far, with the first cargo sold at discounts of 30-40 cents a barrel three weeks ago, the sources added.

The strength in spot sale prices has been attributed to persistently tight supply-demand balance expected into November, trade sources added.

The company typically does not comment on commercial matters.
Source: Reuters (Reporting by Trixie Yap; Editing by Shreya Biswas)