SINGAPORE (Reuters) – Taiwan state-owned refiner CPC Corp has issued a tender to offer June-loading gasoil despite a high likelihood of them skipping June sales earlier, in a bid to cash in on better margins for prompt material, several sources said on Tuesday.
The tender closes on May 24, with validity up to May 26, a document on the company website showed.
Around 300,000 barrels of 10 ppm sulphur gasoil is available for sale via this tender for loading between June 16 and 30, the document added.
The paper swaps market is still in a backwardated price structure, which is encouraging sellers to sell prompt material which could be 20-30 cents per barrel higher than forward cargoes, one of the sources said.
A backwardated price structure is typically one where prompt prices are trading higher than forward prices.
More-than-expected stocks for June could have also contributed to the spot availability in the end, a second source said.
(Reporting by Trixie Yap; Editing by Rashmi Aich)