Asia/Pacific News
Singapore's Hin Leong in Surprise Gasoline Sale
Hin Leong Trading Pte (Hin Leong) has surprised traders by making a sale of 50,000 barrels of 92-octane grade gasoline in the Singapore cash market to Unipec at $73.60 a barrel, Reuters reports.
Hin Leong, who normally trades fuel oil and middle distillates, does not typically trade gasoline.
"I do not recall seeing Hin Leong in the gasoline cash market (before)," said one Singapore-based trader.
The cargo is reported to be for July 26-30 loading from any Singapore or Malaysian ports as approved by Platts.
The price for the gasoline is said to be the lowest achieved by a seller for 92-octane grade in Singapore's cash window since April 15, and was attributed to a large fall in prices for Brent crude.
"This came as a surprise but it adds to market liquidity," said one trader of the sale.
It is unclear why the Hin Leong was participating in the market, but if the firm continues its participation, there would reportedly be more bid and offer options, depending on their position.
Gasoline is said to be experiencing an "unusual bull run" because of an import spree by India following after refinery maintenance caused a supply shortfall, as well as growing demand from China.
Indian Oil Corp (IOC) has reportedly bought more than 500,000 tonnes of gasoline for March to July delivery, and Hindustan Petroleum Corp Ltd (HPCL) has bought more than 200,000 tonnes of the fuel for May to July delivery.
In May, Hin Leong was said to be gauging potential buyers for interest in a minority stake in Singapore oil-storage provider Universal Terminal (S) Pte Ltd (Universal Terminal).
